Sale of EQT's Swiss outsourcing company VFS stalls - sources

FRANKFURT/ZURICH (Reuters) - Buyout group EQT Partners is putting plans for a sale of outsourcing firm VFS on ice as suitors’ views on valuation were too far away from EQT’s expectations, people close to the matter said.

Talks on the consular - and visa-services company - seen worth up to 2.5 billion Swiss francs ($2.5 bln) - have stalled, the people said, adding that they could be revived at a later stage and an initial public offering remains an option.

EQT earlier this year launched an auction for VFS, formerly a part of travel group Kuoni and had attracted offers from private equity investors such Partners Group, Cinven, CVC, Permira, PAI and Onex.

EQT declined to comment.

($1 = 1.0055 Swiss francs)

Editing by Riham Alkousaa