Hammerson, an owner of shopping centres including Birmingham's Bullring and London's Brent Cross, is abandoning plans for a £3.4bn takeover of fellow retail group Intu, to the ire of the target.

FTSE 250-listed Hammerson said it is withdrawing its recommendation for shareholders to vote in favour of the deal, which was agreed in December. The move comes just days after France's Klépierre, which had proposed its own £5bn-plus takeover of Hammerson, said it would not make a firm offer for the company.