Greencore gets more time for Northern bid

Greencore Group plc yesterday, persuaded Northern Foods to delay its shareholder meet to give the Irish food producer more time to consider a counterbid to Ranjit Boparan's £342 million takeover offer.

Boparan's offer was due for recommendation to investors at an extraordinary meeting yesterday, but Greencore approached the food producer after Fox Biscuits and Goodfella's Pizzas on Friday, asking it to adjourn the meeting.

Following talks with the Takeover Panel, Northern Foods agreed but bankers were sceptical that Greencore could produce a counterbid to better the 73p a share offer that Boparan's BH acquisition proposed last month, that broke up a nil-premium merger agreed between Northern and Greencore in November (See: Ranjit Boparan wins control of UK's Northern Foods for £342 million).Shares of Northern Foods were flat at 74.5p yesterday at trading close yesterday. 

According to analysts, if a vote taken place, it would almost certainly have gone in favour of the offer from Boparam, the poultry processing magnate who is the owner of the 2 Sisters Food Group. He founded the food manufacturer in 1993, and has since then grown its revenues to £1 billion shareholders by 18 February.

Meanwhile, along with a trading update at its own annual shareholders' meeting yesterday, Greencore said it was "considering its options."

However, analysts doubt whether Greencore would be able to come back with a bid to trump BH Acquisitions.