"Diageo is continuing its discussions with TPG, while considering the other options available to it," says the release. Published reports say the fast food chain's market value has deteriorated and Diageo was asked to drop its price tag by perhaps hundreds of millions of dollars.

On July 25, Diageo announced the proposed sale of Burger King Corp. to a buying group consisting of Texas Pacific Group, Bain Capital and Goldman Sachs Capital Partners. The completion of the sale had conditions that included Burger King satisfying performance targets in the period up to closing and the buyer's financing.

Under that agreement, Diageo would have received $2.26 billion in cash for Burger King Corp. on a debt-free basis. Burger King would have retained a minimum level of working capital, including $15 million in cash.