Adriano Galliani says AC Milan missed out on Jonathan Biabiany because Parma wanted a clause obliging the San Siro side to buy the winger this summer.
Milan were keen to sign the 25-year-old in January following head coach Clarence Seedorf's request for attacking reinforcements, but they eventually failed to reach an agreement with the Gialloblu.
"Regarding Biabiany, Parma wanted a loan with an obligation to buy, whereas we only wanted a loan with an option to buy," Milan CEO Galliani was quoted as saying on the club's official website.
"We tried it, but we couldn’t reach an agreement in the end."
Galliani then went on to stress that Milan will do whatever it takes to satisfy Seedorf once the transfer window re-opens at the end of the season.
"There’s a lot of dialogue between myself and Clarence and it’s clear that when changing the formation, you need new players," he continued.
"In June, we’ll sort out what needs sorting."
Milan signed Adil Rami, Keisuke Honda, Michael Essien and Adel Taarabt this winter.