UPDATE 1-Chile's Colbun says not able to bid for Colombia's Isagen

(Adds analyst and trader's comments, share price)
SANTIAGO, Jan 11 (Reuters) - Chilean energy company Colbun
COL.SN said on Monday it will not be able to bid for a
controlling stake in Colombian power generator Isagen ISG.CN
on Wednesday.
"Due to the new deadlines established by the authority to
present a bid and also in part because of a 21.5 percent
increase in the minimum price, Colbun will not be in a position
to present a bid on the scheduled date," the company said in a
letter posted on its website.
Consortiums controlled by Colbun and Canada's Brookfield
Asset Management BAMa.TO were expected to bid for the 57.6
percent stake in Isagen on Wednesday. The stake is valued at
around $1.94 billion.
Colombia will go ahead with the sale of the power generator
even if there is only one bidder, Finance Minister Mauricio
Cardenas said in an interview with the El Tiempo newspaper,
published early Monday. He said the government was prepared for
only one bidder and that he was certain Brookfield would
participate in the auction.
Some in the market viewed the transaction as expensive with
one trader saying "the project wasn't so good, so (Colbun's)
decision was a good one. Perhaps if the auction is unsuccessful
(Colombia's government) will have to adjust the price."
Colbun's share price jumped 3.23 percent following the news.
The sale of the utility has been suspended at least twice
because of legal challenges. The latest appeal seeking to halt
the sale was rejected in September.
"Since the minimum price was raised three weeks ago Colbun
didn't have time needed to make a bid because despite having
some $1.3 billion in cash, much of that is in deposits, so
getting the cash together was an issue," the analyst said.
The possibility that Colbun would have needed to start a
takeover bid for the remaining stakes held by minority
shareholders likely also weighed on its decision, the analyst
said.