Talks surrounding the takeover of Albertsons Inc have broken down, according to a US press report.

According to a report by The New York Times it was unclear why negotiations between the investors - made up of drugstore chain CVS Corp, SuperValu Inc. supermarkets, Cerberus Capital Management and Kimco Realty Corp - and Albersons board had fallen through.

The consortium had been planning to offer US$9.6 billion in cash and stock for the retail group, or about US$26 a share.

The New York Times said Albertsons was now looking at several other options. These could include selling some underperforming stores and its drugstore business, an unidentified source told the paper. The company could use the proceeds to recapitalise.