Members of the consortium bidding for supermarket chain Somerfield are in talks over whether Icelandic retailer, Baugur, should remain part of the group.

Baugur is part of a consortium - which includes Barclays Capital, Robert Tchenguiz and Apax Partners - tabling a £1bn-plus bid for Somerfield.

However, last week, the National Commissioner of the Icelandic police said that six people - Baugur’s chief executive, Jon Asgeir Johannesson, his father, Johannes Jonsson, his sister, Kristinn Johannesdottir, two accountants and former chief executive, Tryggvi Jonsson - had been charged with fraud.

Despite the charges, of which the six have denied, Baugur has said that it will not withdraw from the consortium and is determined to press ahead with the bid.

Media reports said that members of the consortium were refusing to comment publicly on whether they wanted Baugur to remain in the group.

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