Premier Foods turns down US suitor McCormick
UK food manufacturer Premier Foods says it has rejected a bid approach from US spices and herbs maker McCormick.
Premier said it had turned down the unsolicited 52p-a-share offer on the grounds that it "substantially undervalued the company and its prospects". Premier owns many UK household brands including Mr Kipling, Homepride, Oxo and Bisto. McCormick describes its products as "saving your world from boring food". Premier's chairman, David Beever, said: "McCormick's proposal represents an attempt to capture the upside value embedded in Premier's business that rightfully belongs to Premier's shareholders. "The proposal fails to recognise the value of Premier's performance to date and prospects for the future, including the strategic plans we have to accelerate growth." At the same time, Premier announced that it was entering into a co-operation agreement with Japanese instant noodle firm Nissin. Under the deal, Premier will be able to distribute Nissin's products in the UK, while making its own products more widely available in key overseas markets.