Greencore expected to make new Northern Foods offer

EXPECTATIONS are growing that Greencore will return with a new bid for Northern Foods.

The Irish food firm is understood to have been discussing proposals with prospective private equity partners although no firm offer has been tabled.

Northern Food shares closed up 0.25p at 74.25p last night fuelled by suggestions that Greencore will defy expectations and make a bid.

It had been thought that Harry Ramsden owner Ranjit Boparan’s 73p per share cash offer, valuing Northern Foods at £342m, was too rich for Greencore which had previously agreed a merger with the Northern Foods board with at an implied 48p per share.

The appointment by Greencore of a new finance director this week also appeared to bring an end to its efforts as the merger deal had proposed Northern Foods finance director Simon Herrick would take that role in the new firm, Essenta.

Mr Boparan has given shareholders until March 2 to accept his offer and is known to have increased his stake in Northern Foods to more than 11%.

Greencore said on Wednesday it was still considering its options.