Rumours about a bid for United Biscuits

According to industry insiders, Kraft Foods, the British food group Premier Foods and the Dutch private equity firm NPM Partners could launch a bid for United Biscuits plc (UB), say reports in the British press. The reports suggest the companies are set to offer around £2.3bn for UB.
Kraft Foods currently holds a 25 per cent share of the biscuit firm. “Kraft does indeed own a 25% stake in United Biscuits, acquired along with the Nabisco business back in 2000,” Julia Westcott said. It is expected that Kraft Foods is now interested in upping its stake to include UB s Southern European operations, which already manufactures Kraft s flagship Oreo brand under licence. Premier Foods confirmed in the "Financial Times" newspaper it is also in acquisition mode, but would not reveal target brands or areas.


UB announced a 2005 year-end profit jump to £204m – up from 2004 s £163m. This was bolstered by contributions from newly-acquired snack brands Jacobs and Truinfo. It has also recently purchased Nik Naks and Wheat Crunchies from bankrupt Golden Wonder.
Market commentators have suggested that Kraft is looking to take direct control of UB businesses in southern Europe, which manufacture Oreo’s under license. Dutch private equity firm NPM Partners is expected to snap up UB’s northern European operations, leaving the UK businesses to Premier Foods.