Cork based retailers Musgraves, which runs the Supervalu and Centra chains in Ireland, has made an approach to buy the UK regional supermarket chain Budgens.
Last year Musgrave paid over £115 million sterling to buy a 28% stake in Budgens and loan stock which it can convert to ordinary shares taking its stake up to 43.5%.
It is clear the privately owned family group is considering taking up this option, and then making a bid for the remaining 56% stake, which would cost over €180 million at Friday's Budgens share price.
In a statement to the London Stock Exchange, Budgens only said it had received an approach which may lead to an offer for the company; Musgraves refused to comment.
The news will fuel speculation that Musgrave will consider taking a stock market listing to help fund the deal - a move which chairman Hugh Mackeown has vigourously denied in the past.
