Media reports and City scepticism
Media reports speculated that Premier Foods was considering selling its Hovis brand to the world’s biggest baker Grupo Bimbo, in September.
However, City analysts said they were sceptical that there was any truth to the reports.
Panmure Gordon’s equities director Graham Jones said: “We are sceptical about the rumours suggesting Grupo Bimbo will acquire Hovis. And, in any case, selling another large chunk of cash flow may not necessarily be the right move given that the pension liabilities tend to be retained by the group.”
Shore Capital said the Hovis brand had been under pressure for some time, but said the fact that Premier Foods had made no announcement suggested the company’s board had not been presented with anything on which to comment.