Private equity firm JC Flowers has backed out of a deal to purchase Refco, Financial News Online reports. Meanwhile, competitive bidders are offering as much as $100 million more than JC Flowers' $768 million.

Judge Robert Drain said he would consider JC Flowers' offer only if the firm reduces its break-up fee from $15 million to $5 million. The judge also wants to withdraw an option that would allow JC Flowers to make an offer on Refco assets beyond its futures arm.

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