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| Kipling cake firm Premier Foods snubs new bid approach | |
| (about 7 hours later) | |
| UK food manufacturer Premier Foods has turned down a third bid by US spices and herbs maker McCormick, saying it "continues to undervalue" the company and its prospects. | |
| The statement came after McCormick upped its bid to 65p a share. | |
| However, Premier said it was willing to open talks with the US company. | |
| Premier, the maker of Mr Kipling cakes and Bisto gravy, revealed last week that it had already rejected two takeover offers from McCormick. | Premier, the maker of Mr Kipling cakes and Bisto gravy, revealed last week that it had already rejected two takeover offers from McCormick. |
| In its latest statement, Premier said it was "prepared for meetings to take place in order to discuss value drivers, a review of material pensions documentation, current trading and material contracts, and so to establish whether McCormick will increase its offer price to a recommendable level". | |
| In afternoon trading, Premier's shares were 6.2% higher on the day at 60p. | |
| McCormick is chiefly known for its Schwartz spices and Lawry's seasonings. It first made a bid of 52p a share last month and then raised it to 60p a share on 14 March. | |
| Also last week, Japanese noodle maker Nissin Foods agreed to buy a 17.27% stake in Premier Foods. | Also last week, Japanese noodle maker Nissin Foods agreed to buy a 17.27% stake in Premier Foods. |
| Nissin, which Premier describes as a "long-term shareholder", is expected to take a seat on the Premier board. | Nissin, which Premier describes as a "long-term shareholder", is expected to take a seat on the Premier board. |
| Overseas markets | Overseas markets |
| Premier used to be one of the UK's biggest food groups, but came unstuck when it expanded too fast, loading itself with debt. | Premier used to be one of the UK's biggest food groups, but came unstuck when it expanded too fast, loading itself with debt. |
| It has since sold off its Hovis bread business to the US-based Gores group, rebuilt its £20m production line at its Mr Kipling bakery in Barnsley and pushed through a £1.1bn refinancing package, which included a £353m rights issue. | It has since sold off its Hovis bread business to the US-based Gores group, rebuilt its £20m production line at its Mr Kipling bakery in Barnsley and pushed through a £1.1bn refinancing package, which included a £353m rights issue. |
| It still owns a range of household UK brands, such as Ambrosia rice pudding, Oxo stock cubes and Batchelors soups. | It still owns a range of household UK brands, such as Ambrosia rice pudding, Oxo stock cubes and Batchelors soups. |
| Premier is increasing its international operations following its co-operation deal with Nissin that allows Premier to distribute its products in the UK, while making its own products more widely available in key overseas markets. | Premier is increasing its international operations following its co-operation deal with Nissin that allows Premier to distribute its products in the UK, while making its own products more widely available in key overseas markets. |
| Nissin invented the first instant noodles in 1958 and operates in 19 countries. Its products include Cup Noodles and Top Ramen. | Nissin invented the first instant noodles in 1958 and operates in 19 countries. Its products include Cup Noodles and Top Ramen. |