An institutional shareholder in baked goods group Aryzta has called on the board to reject approaches from the private equity firm, Elliott Advisors.

Elliott made a non-binding proposal to Aryzta's board of directors on November 18th to acquire all outstanding shares of the Swiss and Irish listed maker of the Cuisine de France range.

The group said at the time that discussions with Elliott had ended in October.

Lodbrok Capital, which holds around 4% of the share capital and about 29% of the total outstanding hybrid debt in Aryzta, said Elliott's offer of 0.80 Swiss Francs "grossly undervalues a re-focused and deleveraged Aryzta."

It described the offer as 'highly opportunistic' and said it didn't reflect the potential that the company could unlock by following a plan of asset disposal and refocusing on key aspects of the business.

It said a sale would not be in the interests of any stakeholder, other than a small number of "short-term-minded shareholders, the former leadership and, of course, Elliott itself."

Lodbrok said it welcomed the recent change in 'leadership and strategic direction' following a shareholder vote at a company EGM in September.

Aryzta has undergone a number of boardroom changes in recent months which saw Garry McGann standing down as Chairman to be replaced by Urs Jordi.

Mr Jordi is currently interim CEO too, following Kevin Toland's departure from the group as chief executive.

Lodbrok also expressed the view that four current board members, who will step down next month, should not partake in any deliberations around a potential formal offer from Elliott.

It added that it was 'very concerned' by the reported actions of former executives and board members in engaging with the private equity group in recent months.