Second Premier Foods shareholder urges talks with McCormick

LONDON, March 24 (Reuters) - Paulson & Co, a top ten shareholder in Premier Foods (LSE: PFD.L - news) , urged the company's board to engage in takeover discussions with McCormick, becoming the second sizeable shareholder to criticise the board for its refusal to enter talks with its U.S (Other OTC: UBGXF - news) . suitor.

Paulson, which owns more than 7 percent of Premier Foods, said on Thursday that it told Premier (NasdaqGS: PINC - news) on Wednesday that the British food company should engage with McCormick.

McCormick has proposed taking over Premier, first at 52 pence per share, and then again at 60 pence per share.

Premier said on Thursday that Nissin Foods bought 17.3 percent of its shares for 63 pence per share, potentially complicating McCormick's approach.

"The fact that the company's longstanding and largest shareholder sold all their shares at 63p, shows that the 60p offer from McCormick should be worthy of engagement," Paulson said in a statement.

Nissin had identified U.S. private equity firm Warburg Pincus, Premier's biggest shareholder, as the seller.

Earlier on Thursday, Standard Life Investments also criticised Premier's board.

(Reporting by Martinne Geller in London. Editing by Jane Merriman)