Scottish Opera was facing bankruptcy

Plans for an all-singing, all-dancing merger were never popular with the parties, but it was promoted as a solution to the financial crisis facing both national companies.

Scottish Opera was on the verge of bankruptcy when the �2.1m was announced.

In ruling out a full merger, Scottish Ballet said service sections like marketing, sponsorship and technical departments would remain separate.

The Scottish Parliament's culture committee said it would be writing to the chairman of the joint board of Scottish Opera and Scottish Ballet following the announcement.

The committee convenor, Mary Mulligan, said she would be asking Duncan Magee for his version of events and that MSPs would also seek views from the Arts Council and the unions.

MSPs have been asking questions about how public money has been spent on the arts companies.

Scottish Opera management was criticised in February for its "irresponsible and inadequate" handling of the crisis that took it to the brink of bankruptcy.

A report by the culture committee accused the company of arrogance in expecting to be bailed out when things went wrong.