(Adds comments from The Business newspaper)
LONDON (AFX) - Premier Foods PLC, the Branston pickle, Sunpat peanut butter and Hartley's jam grocery products group, has formed a consortium to bid for United Biscuits, owner of brands such as McVitie's Jaffa Cakes and Hula Hoops, Saturday's Financial Times reported.
The newspaper, which did not cite sources, said the consortium, which includes another trade buyer and two private equity houses, has made an approach to UB but talks are still at a preliminary stage.
It said UB is thought to be worth 2.3 bln stg, including debt of 1.9 bln stg.
According to the FT, if the consortium's bid is successful, UB would be broken up, with Premier taking the UK biscuits business.
UB was taken private in 2000 for 1.26 bln stg by Finalrealm, a consortium of three private equity firms -- Cinven, PAI Partners, and MidOcean Partners -- and Kraft, the US food group now part of Altria Group Inc.
Premier Foods shares closed Friday at 297 pence, valuing the business at 736 mln stg.
Meanwhile, The Business reported that Premier has emerged as frontrunner to buy condensed soup company Campbell's UK and Ireland business, worth up to 650 mln stg.
The newspaper also suggested United Biscuits' owners may prefer to float the company rather than pursue a trade sale. newsdesk@afxnews.com jdd/bam/jdd/bam COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited