Major Premier Foods shareholder slams board over handling of bids

LONDON, March 24 (Reuters) - Standard Life Investments on Thursday criticised the board of Premier Foods (LSE: PFD.L - news) over its handling of takeover bids from U.S (Other OTC: UBGXF - news) . rival McCormick & Co. and the purchase of a stake in the firm by Japan's Nissin Foods.

The maker of Mr. Kipling cakes and Bisto gravy rejected a second bid from McCormick on Wednesday and instead agreed a deal with Nissin that would see it take a 17.27 percent stake in Premier (NasdaqGS: PINC - news) , it confirmed on Thursday.

In response, David Cumming, head of equities at Standard Life Investments, the fund arm of insurer Standard Life (LSE: SL.L - news) , which is one of the biggest shareholders with a roughly 7 percent stake in Premier, said he wanted the company to reengage with McCormick to try for a higher bid.

"We note with some dismay the timing of Nissin's acquisition of a stake in Premier Foods. In our view, this does not reflect well on the Premier Foods Board's objectivity and commitment regarding its engagement with McCormick and consequently its desire to pursue maximum value for shareholders," Cumming said in a statement.

"Although we believe the 60 pence bid indicated by McCormick is too low, we remain open to a bid at a higher level. We expect the Premier Foods Board, on behalf of its shareholders, to engage with McCormick and pursue this option to the full." (Reporting by Simon Jessop; editing by Carolyn Cohn)