The future of the Millennium Dome was thrown into more uncertainty yesterday as Japanese bank Nomura International pulled out of its proposed £105m bid to buy it.

The bank said it had "reluctantly" withdrawn from negotiations to take over the Dome from next year because of "substantial uncertainty" about what assets the New Millennium Experience Company could deliver to it on the transfer.

Minister for the troubled dome Lord Falconer said he would not resign.

He said: "It is a very, very regrettable development that Nomura have pulled out, but the Government has indicated today that it is in talks with the people who came second.

"And they were second in what was described at the time as a very strong field."

Nomura edged out a rival, more business-orientated, bid from the Legacy consortium with plans to pump about £800m into the Dome and its surrounding area.

Now Legacy has renewed its interest in bidding for the Dome.

Nomura had planned to turn the site into a huge amusement park celebrating the richness of European culture.

Guy Hands, Nomura's head of principal finance, said: "This was a very difficult decision to make, but in the circumstances we had no alternative.

"I feel very sorry for the people of Greenwich and particularly for the Dome's employees who face an uncertain future through no fault of their own."

NMEC said it was "surprised and disappointed" by the decision to pull out and rejected the claims as unfounded.

The company said executive chairman David James had drafted in extra legal and accounting resources to deliver an agreement with Nomura as soon as possible.

Talks, it said, "had been progressing well in an atmosphere of cooperation and goodwill".

It added: "We are therefore surprised and disappointed by this development, particularly the stated reasons, which we believe are without foundation.

"The Dome will stay open to the end of the year, and NMEC will run it up to that time as the UK's leading paying visitor attraction."

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