Schroder Salomon Smith Barney (SSSB), the European investment bank, is unlikely to pull off the sale of Bankgesellschaft Berlin after the German bank's owner rejected a €10m ($10.6m) offer for it on Tuesday, according to analysts.

SSSB was hired in February last year by the Berlin Senate to sell Bankgesellschaft Berlin, which posted losses after a series of investments went sour. But the sale process suffered a setback because potential buyers were wary of paying a high price while Bankgesellschaft is in a vulnerable financial position.