Geest's burned offerings do not deter Bakkavör bid

Geest has temporarily halted external recruitment to give staff affected by a blaze at its pasta and bread factories in Barton-on- Humber a chance to find work elsewhere in the company.

So far, about 150 of the 500 staff affected by last month's fire have been moved to other Geest sites.

The company declined to reveal how much business from the factories, which represented less than 10% of its assets and 6% of sales, had been transferred to other sites.

However, analysts said that a reasonable chunk of the own-label filled pasta and speciality bread business could have been switched elsewhere.

"We have business continuity plans in place," said Geest. "They didn't help prevent the fire, but they have helped us deal with it."

Meanwhile, Geest's shareholders have approved a takeover by Icelandic group Bakkavör. The deal, expected to be confirmed by May 13, will create the UK's largest chilled food firm with sales approaching £1bn. It follows a flurry of activity in the sector, with Cranswick snapping up Perkins Chilled Foods and Uniq stalked by private equity firms.

Bakkavör's four UK factories making chilled meals, marinades, dressings and ethnic snacks had sales of £150m in 2004, dwarfed by Geest's £830m. While Geest has already cut costs, ripping out 10% of its management, there would be further savings, said Bakkavör.

Geest's chief executive Gareth Voyle will become chief executive of the combined group.