Allen & Overy (A&O) has lost its advisory role on the £1.1bn bid for Somerfield after its client, Baugur, last week pulled out of the front-running bidding consortium.

A&O had been advising Baugur on a bid for Somerfield, but had been pushed into a secondary role after the Icelandic retailer joined forces with a Robert Tchenguizled consortium in April.