Diageo may go back to other bidders for its Burger King fast-food chain if the Texas Pacific Group consortium fails to close its £2.26bn buyout, industry sources said yesterday.

The Texas Pacific consortium, which includes Bain Capital and Goldman Sachs Capital Partners, is said to be having problems raising the finance for the leveraged buyout because of deteriorating market conditions and softening sales at BK since it agreed to buy the chain in July.

While Diageo is "still committed" to closing the current deal with Texas Pacific, sources say that if it cannot be closed in the final quarter of 2002 Diageo may go back to the private equity firm Thomas H Lee Partners, which just lost out to Texas Pacific's bid.

One source was quoted this morning as saying: "Whatever happens Burger King will be sold. Whether it's Texas Pacific or another buyer the group is committed to sell it."