LONDON (ShareCast) - (Sharecast News) - Premier Foods confirmed on Wednesday that it is in talks over the sale of its 49% stake in bread maker Hovis.
"The group confirms that a sale process for a potential transaction in respect of Hovis is ongoing," it said. "However there can be no certainty that any transaction will conclude. The group will provide an update in due course as appropriate."

The statement followed a report by Sky News suggesting that British private equity firm Endless is in advanced talks to buy Hovis after a bidding war against Italian food producer Newlat Food. Sky cited sources as saying that a deal could be confirmed as soon as this week, but has yet to be finalised.

Earlier, Newlat put out a press release saying it had let Hovis shareholders knows that it did not plan to proceed further with the competitive tender for the purchase of Hovis unless it was able to get exclusive access.

It said: "Newlat Food, while confirming its interest in the acquisition of the target, informed the counterparty that the negotiation will be resumed only in the event that the shareholders of Hovis grant, on the basis of the non-binding offer, an exclusive negotiation period to Newlat Food in order to be able to proceed quickly to the closing of an agreement.

"As soon as the company receives a reply to the request for exclusivity or any other detail regarding the transaction, it will promptly notify the market."

Premier Foods also owns Mr Kipling, Oxo and Bisto, among other brands. US-based private equity firm The Gores Group owns the remaining 51% in Hovis.

At 1420 GMT, Premier shares were up 6.1% at 104.27p.

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