The Bank of France expressed reservations about ING's $10.16 billion (€10.03 billion) offer for Credit Commercial de France, the French bank, it emerged yesterday.

The reservations played a key part in the surprise decision by the Dutch banking and insurance group to withdraw the offer just hours after it became public at the weekend.

It also emerged that ING was pressing for a quick agreement before markets opened on Monday, but the board of CCF was not ready to strike a deal on the Dutch bank's terms.

These disclosures are likely to revive concerns that the French authorities are unwilling to countenance foreign ownership of domestic banks, at a time of growing cross-border consolidation in other sectors in the EU.

ING, the French bank's biggest shareholder, with a little less than 20 per cent, has been courting CCF for more than a year.

On Sunday, ING executives held a secret meeting in Paris with Mr Jean-Claude Trichet, governor of the central bank, to inform him of their plans to mount a friendly takeover of CCF.

Yesterday ING insisted Mr Trichet had not blocked the offer. But those close to the deal said Mr Trichet, who is also chairman of the CECEI banking regulator, was unhappy about the way the deal had been presented.

ING said: "We came on Friday with a deal we felt confident could be completed before the markets opened on Monday. Because the board of CCF was not enthusiastic we withdrew."

But people involved in the negotiations said ING must have been aware that a deal could not be cleared over the weekend.

CCF organised a board meeting on Sunday night, but directors were bound by French law, which requires that staff representatives be consulted before formally accepting a bid.

ING yesterday was cautious about its plans for CCF. It said there were "no bad feelings, quarrelling or anger. We want to do business with these people".

CCF had pledged to study the cash offer of 137.5 a share at its next board meeting on Thursday.

Mr Charles de Croisset, CCF's chairman, yesterday issued a statement, saying: "The president of CCF, after consulting most of the board, expresses his surprise at ING's decision [to withdraw]."

The CCF bid was the first potential banking consolidation move since last summer's threeway takeover battle between the country's biggest listed banks Banque Nationale de Paris, Societe Generale and Paribas.

The takeover battle exposed the shortcomings of French financial rules in complex takeovers and underlined the reluctance of the authorities to allow a leading bank to fall in foreign hands.

The French authorities are working on a new takeover code that would include an obligation for bidders to inform regulators up to three weeks before launching a bid. ING shares closed down 1 per cent at 56.40 in Amsterdam.