Philippine outsourcing firm IPVG Corp. and private equity firm AO Capital Partners Ltd. on Wednesday said they have formally withdrawn their $385 million proposal for the acquisition of PeopleSupport Inc. PeopleSupport on Jan. 31 rejected IPVG Corp.'s $17 per share offer, saying IPVG could not show how it would fund the purchase.

In a statement Wednesday, IPVG said it would have disclosed its financing structure if PeopleSupport had agreed to terms of its non-disclosure agreement, which included an exchange of non-public information, removal of the company's poison pill and a break-up fee.

"In light of PeopleSupport's non-acceptance of our proposed terms and conditions we will now focus on other equally or more attractive targets," IPVG CEO Enrique Gonzalez said in a statement.

Though PeopleSupport previously said it would consider signing a non-disclosure agreement with IPVG, it seems unlikely that the company was ever truly interested in striking a deal, and probably would have found other reasons to reject the offer. -- David Shabelman

See Jan. 31 post from TechConfidential
See Jan. 29 post from TechConfidential
See December 2007 story from TechConfidential