Icelandic investment group Baugur, which is in talks to buy the UK's Big Food Group, is reported to be putting its plans to make an offer for the grocery firm on hold temporarily.

Despite having spent seven weeks looking at Big Food Group's books, it could be another fortnight, or even more than a month, before Baugur makes a firm offer for BFG, reported The Times Online.

One problem is BFG's pension deficit of around £192m (US$356.5m). Baugur's takeover consortium is having difficulties agreeing with its bankers and BFG's pension fund trustees on a way of funding the deficit.

Baugur is believed to be considering a bid of less than 110p per share, the price at which BFG said it would recommend an offer to shareholders.

Big Food Group owns frozen food retailer Iceland, wholesaler Booker and foodservice company Woodward.