A statement on Palermo's website confirmed: "Palermo announce that the negotiations with Boca Juniors for Gabriel Paletta has definitively concluded due to misunderstandings that emerged after agreements made by both clubs."
Director of sport Walter Sabatini explained what exactly happened in more detail when he spoke to stadionews.it.
"Paletta won't be coming due to an economic problem. There was a misunderstanding on the sum that was to be paid.
"We had made an offer that included the taxes and fees to be applied to the transfer, while Boca were convinced this was a 'pre-tax' bid and wanted an extra 24 per cent.
"We got angry and said enough was enough. Perhaps Boca found another club willing to offer more and decided to play this little game."