Reuters reported that United Company RUSAL had been in talks with Libyan Investment Authority over the possibility of selling it a 10% stake.
RUSAL, controlled by Russian magnate Mr Oleg Deripaska said that it had secured another extension on restructuring billions of dollars of debts to foreign and domestic banks.
The Times said that there had been active discussions over a possible stake sell to LIA.
The paper said that "However, RUSAL became frustrated at the lack of progress and the slow speed at which officials in Tripoli operated and has walked away."
Ms Vera Kurochkina spokeswoman of RUSAL said that "In the framework of restructuring its debts, RUSAL has been in contact with various financial organizations and investments funds and is considering various options in terms of attracting capital including a possible IPO."
RUSAL is in talks to restructure around USD 7.4 billion of debts to foreign banks. It also owes some USD 4.5 billion to Russia's state run VEB bank and USD 2.1 billion to other local banks.
Mr Deripaska said in February that RUSAL which has been hit by falling global demand for metals has potential investors which are interested in acquiring a stake but that talks had been postponed until debt restructuring is complete. At the time, he hoped that a restructuring deal would be signed in March.
