FOUNTAIN Set (Holdings) says the leader of a consortium bidding to privatise the company has informed it that the privatisation will not proceed. Since the privatisation was announced on May 9, a consortium led by company chairman Ha Chung-fong with fund manager Value Partners has been negotiating funding. Fountain Set director Hui Yip-wing said that although 'major structural aspects of a shareholders' agreement' had been agreed on in principle, 'major aspects relating to the rights and liabilities of the parties [involved] remained unresolved'. There were difficulties in establishing the proportion of convertible note holders - the notes were issued in February 1994 - who might agree to repurchase or redemption of the notes. 'The directors have further been informed by Mr Ha and Value Partners, who . . . led the consortium, that the proposal will no longer proceed,' Mr Hui said.