The one club we knew really wanted Andros Townsend was Southampton, but they appear to be done with him. The Press Association says that the Saints have given up on trying to sign Townsend and Sky Sports News confirmed it.
Southampton reportedly lodged a £12 million bid for Townsend last week, only for Spurs to turn it down. There were rumors of a possible swap deal with Townsend going to the Saints and Jay Rodriguez going to Tottenham as well, but it doesn't look like that will happen either.
The Saints' backing off Townsend doesn't appear to be a change in their evaluation of Townsend, but a recognition of their need to move on while they still can. Southampton still want to sign a winger and they can't afford to continue chasing Townsend if it means risking their ability to sign someone else. If Tottenham don't want to sell -- at least at a reasonable price -- then the Saints have to look elsewhere.
Tottenham may regret not selling Townsend, especially with the winger looking unlikely to be first choice. If they keep him, they will have turned down £12 million for a backup winger. It's still possible that other teams are interested in Townsend and Spurs could sell him elsewhere before the deadline closes, but right now it looks like he is staying at White Hate Lane.