FULL details of fraud charges against Jon Asgeir Johannesson and five other executives linked to Baugur, the Icelandic retail investor, are expected to be made public by the end of this week, it has emerged.

Barclays Capital and Apax Partners, the private equity firms, Robert Tchenguiz, the property tycoon, and debt providers including Royal Bank of Scotland remained in talks yesterday over whether to push Baugur out of the consortium bidding for Somerfield, the supermarket chain.

All parties are understood to be aware of the full details of the 40 charges being brought by the Icelandic authorities against the six executives. Mr Johannesson’s lawyers said that they expected to release full details of the charges against their client this week.

The major charges relate to the alleged embezzlement of more than 307 million Iceland kronors (£2.7 million) concerning transactions in shares of Arcadia, the owner of Top Shop that was formerly listed on the London Stock Exchange, and of further funds relating to the purchase of the 10/11 supermarket in Iceland. The six executives have denied the charges.

Sources close to the consortium say that the charges do not pose any issues of significant concern. However, each of the partners is nervous about the risk to its reputation in forming a partnership with a company with executives linked to fraud charges and are pushing Baugur to withdraw.

Somerfield, which released its preliminary results yesterday, declined to comment on the charges. Steve Back, chief executive, said that “significant progress” had been made in discussions with interested parties. Those discussion were at an “advanced stage”, he said.

The consortium of Apax, Barclays and Mr Tchenguiz is now not expected to make a firm bid, with or without Baugur, for at least three weeks. A rival bid from the Livingstone brothers, the property tycoons, backed by Nomura, the Japanese bank, is not expected until early next month.

Somerfield revealed a 63 per cent rise in pre-tax profits to £53.1 million in the year to April 30, while total sales rose 10 per cent to £5.2 billion.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax