Premier Foods has rejected a second takeover approach from US peer McCormick & Co, saying it undervalued the maker of Mr Kipling cakes and Bisto gravy.
Premier said today that McCormick first approached it on February 12 with a possible offer of 52 pence per share, which it rejected.
On March 14, McCormick put a possible 60 pence per share on the table, which Premier also dismissed as too low.
McCormick, known for its flagship spices and Lawry's seasonings, is valuing Premier at about £496m, or 60 pence per share, based on Reuters data.
The US company has until April 20 to make a firm offer for the company under British takeover rules.
"McCormick's proposal significantly undervalues the business," Premier's chairman, David Beever said in a statement.
"It 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," he added.
Premier raised its medium-term sales growth forecast to a range of 2-4%, up from 1-2%, helped by the roll-out of Mr Kipling and Cadbury cakes more broadly, the extension of its grocery brands into more premium, chilled categories, and stepping up its international expansion.
At the same time, Premier said it signed a cooperation deal with Japan's Nissin Foods Holdings, the maker of instant noodles, that could see Premier sell Nissin's products in Britain and Nissin sell Premier's overseas.
The deal could also see Nissin take a stake in Premier Foods and gain a board seat if its stake was 15% or more, according to a statement.
