Advertisement
UK markets close in 7 hours 32 minutes

  • FTSE 100

    8,125.01
    +46.15 (+0.57%)
     

  • FTSE 250

    19,748.99
    +147.01 (+0.75%)
     

  • AIM

    755.60
    +2.48 (+0.33%)
     

  • GBP/EUR

    1.1654
    -0.0003 (-0.02%)
     

  • GBP/USD

    1.2508
    -0.0003 (-0.03%)
     

  • Bitcoin GBP

    51,394.60
    +220.51 (+0.43%)
     

  • CMC Crypto 200

    1,387.87
    -8.67 (-0.62%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • DOW

    38,085.80
    -375.12 (-0.98%)
     

  • CRUDE OIL

    84.04
    +0.47 (+0.56%)
     

  • GOLD FUTURES

    2,357.40
    +14.90 (+0.64%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • HANG SENG

    17,666.64
    +382.10 (+2.21%)
     

  • DAX

    18,019.02
    +101.74 (+0.57%)
     

  • CAC 40

    8,039.58
    +22.93 (+0.29%)
     
PROPERTY:

9 luxury homes to consider if money is no object

Ever thought about what a multimillion pound budget would buy you?

Kellogg evaluating bid for United Biscuits: source

Reuters - UK Focus

(Recasts story to focus on Kellogg exploring a bid for United Biscuits)

Aug 6 (Reuters) - Kellogg Co has hired an adviser to evaluate a bid for cookies and snacks maker United Biscuits Ltd (IPO-UNI (Other OTC: CEMTY - news) .L), a source familiar with the matter said.

The breakfast cereal maker is in the early stages of exploring a bid for the company, the person said, and has not decided if it will move forward with an offer.

Kellogg and UK-based United Biscuits are not currently in negotiations, the person said.

Sky News reported earlier on Wednesday that Kellogg was working with investment bankers from Barclays (LSE: BARC.L - news) on a possible 2 billion pound ($3.4 billion) bid for United Biscuits. (http://bit.ly/1y65JTa)

ADVERTISEMENT

United Biscuits' private equity owners, Blackstone Group LP and PAI Partners, have been working on plans for a sale or an IPO that would take place by year-end, the source said.

The source said the owners would opt for a sale over an IPO if the offer were at a "very good price" above 2 billion pounds.

Kellogg, best known for its corn flakes cereal, is the latest company to be linked to an offer for United Biscuits.

Chinese private equity firm Hony Capital was said to be considering a bid for the British company in January.

Industry insiders have said that Kellogg could be a possible suitor for United Biscuits because of its large presence in the snack aisle with Keebler cookies, Pop Tarts and Cheez-It crackers.

Sales in Kellogg's U.S. cereal business have fallen for five quarters in a row as other breakfast options such as yogurt and frozen egg sandwiches grow in popularity.

Kellogg said it does not comment on rumors or speculation.

United Biscuits did not immediately respond to an email seeking comment. A Barclays spokesman declined to comment.

Kellogg shares ended at $62.78 in regular trading, down 2.5 percent. ($1 = 0.59 British pound) (Reporting by Ramkumar Iyer and Esha Vaish in Bangalore, and Sophie Sassard and Pamela Barbaglia in London; Editing by Steve Orlofsky)