Blues boss Alex McLeish told the club's official website: "Bobo would be ideal for the team that I am building to get us to the Premier League but he is out of our reach in terms of finance.
"I am fine with that. I know that we have limitations on how far we'll go and I wish Bobo all the best in wherever he chooses to go. At some stage we have to say no to certain demands.
"I am not saying he's greedy, that's up to Bobo to ask for what he thinks is right for him but it's just too rich for us.
"That is the situation unless he comes back and says that he would be willing to play for the jersey and take a cut in what he is asking for. But we'll keep looking to strengthen in that department."