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Milan have told Parma that they will not meet their £35m asking price for star striker Alberto Gilardino.
The Rossoneri were believed to be in pole position for the Italian international but his valuation now seems to be a major stumbling block.
"All transfer negotiations are on hold until the end of the season," said chief Adriano Galliani. "However, the figures I’ve been reading about are out of the question."
Milan’s reluctance to dig so deep into their pockets will allow other clubs to join the chase as Parma have admitted.
"I would say that Milan, Juventus and Inter all have an equal chance of netting Gilardino," administrator Luca Baraldi stated on Italian television last night.
The reigning Italian champions may now look elsewhere for a new attacker, with two men freshly linked on Wednesday.
The first is Udinese striker Vincenzo Iaquinta who has enjoyed a wonderful season at the Stadio Friuli.
Yet boss Carlo Ancelotti is also a fan of Palermo target man and Italian international Luca Toni.
Meanwhile, Milan are set to meet with their Chelsea counterparts on Monday to discuss two transfers.
The Italian outfit want to keep Hernan Crespo on a permanent basis, while the Stamford Bridge side are keen on left-back Kakha Kaladze.
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Milan could offered around £ 15m + Jon Dahl Tomasson, Cristian Brocchi and a loan of Nicola Pozzi and maybe a another player for Gila.