Olisadebe failed Blues medical
Bruce had lined up a £3.3 million move for the Panathinaikos marksman and was believed to have agreed personal terms with the 23-year-old.
But Bruce opted against pushing through the deal after stringent medical tests uncovered problems which would have meant the transfer being a real gamble.
The Blues chief admitted he would have kept quiet about the reasons for the transfer's collapse but Olisadebe's comments forced him to state his side of the story.
Olisadebe had branded the Premiership new boys' behaviour unprofessional for the delay in the deal but Bruce insists it was because the Nigerian-born hit-man did not pass his medical.
"We invited him for talks and he was picked up at the airport by our reserve team manager," said Bruce.
"He then underwent a medical which he failed because it revealed a number of serious issues.
"So we felt it was too risky to proceed with the deal because of the size of the fee involved.
"We were prepared to keep quiet about the matter and are disappointed by his comments. As a result, we feel it's only fair to our fans to let them know the truth."