Permira, the UK private equity firm, has abandoned its potential £940m (€1.4bn) bid for WH Smith after the two sides failed to agree on how to plug the UK retailer's pension fund deficit.

Permira's statement, made through Jamaica Trading, its bid vehicle, on Friday afternoon brings to an end more than three months of takover talks. It first approached WH Smith on April 18 and made an indicative bid in May for 371p per share, valuing the company at £940m.