30th Mar 2016 17:01
LONDON (Alliance News) - Japanese noodle maker Nissin Foods Co Ltd has increased its stake in Premier Foods PLC to just shy of 20%, according to a stock exchange filing on Wednesday.
Nissin purchased a 17.3% stake in Premier last week from private equity firm Warbung Pincus, and according to the statement, this increased to 19.9% on Tuesday this week. Premier Foods was informed of the increase on Wednesday.
Earlier Wednesday, Premier said it would enter talks with McCormick & Co Inc after the US spices and flavourings maker made a higher offer for the company.
McCormick's offer of 65.00 pence per share is the third bid it has made for Premier, after the first two of 52.00p and 60.00p were rejected. Premier said on Wednesday it still believed the revised offer undervalued the company, but that it would hold meetings with McCormick to discuss whether McCormick would increase its offer further.
Premier and Nissin are also holding talks on the terms of a relationship agreement which would see a Nissin representative appointed to Premier's board, but last week Premier said, amid its rejection of the McCormick offers, that Nissin has confirmed it has no intention of making an offer to acquire Premier Foods in the next six months.
Shares in Premier Foods closed up 6.6% at 60.25p on Wednesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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