Greencore 'considering options'

Greencore has said it is still considering its options in relation to a would-be merger with Northern Foods.

Raanjit Boparan has received the support of more than 34 per cent of Northern Food shareholders for his 73 pence a share offer for the company, which produces Goodfella's pizzas and Fox's biscuits.

Because Greencore has yet to make its intentions clear regarding any revised offer for Northern Foods, analysts had expected that most shareholders would delay accepting Boparan's offer in the hope that Greencore might return with a better one.

Mr Boparan needs 75 per cent of shareholders to accept his offer and has set a fresh deadline of March 16th by which shareholders must respond.

In a statement this morning, Greencore said it was considering its options in relation to the business and that a further announcement "will be made in due course".It was last month said to be in talks with private equity firms with a view to securing support for a new offer

The Northern Foods share price has been gradually dropping in recent days, signalling that the market believes that Greencore is less likely to mount a counter-offer for the company.

Some 90 per cent of Northern Foods’ shareholders are institutional investors, with the remainder held privately.