Private equity prepares Northern Foods bid

The investment firm, which is believed to want to remain anonymous until it is certain it wishes to compete for Northern, could be looking to split the company between itself and Greencore in a potential takeover.

Greencore, meanwhile, was drawn to private equity players after its previous all-share merger proposal for Northern was beaten by poultry tycoon Ranjit Singh Boparan's offer to pay 73p per share for the business. Boparan is already in possession of an 11.4% stake.

The bid, which values the company at £342m, cannot go ahead, however, until Northern's shares drop below the 74-75p level at which they have remained since the offer was made – a situation helped little by the news that the firm has peaked the interest of private equity.

Greencore and its mystery partner have until 2 March to arrange a counter bid. Unlike the former's previous offer, this may involve a cash element.

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• Topics
• UK / Ireland
• Consumer
• Buyouts