Insider Media Limited

Shares in Northern Foods have risen by 7.4 per cent after the food producer confirmed the interest of West Midlands businessman Ranjit Boparan in a possible takeover.

The involvement of Boparan, who owns the Harry Ramsden restaurant chain, has prompted speculation he will launch a £300m counter bid to rival Leed-headquartered Northern's proposed merger with Greencore.

Northern's board told shareholders it continued to recommend the proposed merger with Irish-based Greencore to form Essenta Foods, despite the emergence of Boparan as a potential rival suitor.

The business said the merger offered "substantial benefits" for Northern's shareholders, customers and employees and will create a convenience foods business with a strong platform for further growth.

However, it is thought any bid made by Boparan may jeopardise the merger plans.

In response, Boparan told the Stock Exchange it was at a preliminary stage in evaluating a possible cash offer for Northern and had requested information under the takeover code.

Although Northern Foods has said that it had not yet received any indication of a takeover bid from Boparan, the Birmingham business tycoon has reportedly requested access to the company’s books, sparking speculation of a possible takeover.

Boparan bought the Harry Ramsden fish and chip chain in January this year. He also owns the Fishworks chain of restaurants, and is one of supermarket giant Tesco’s biggest chicken suppliers.

Despite the interest from Boporan, Northern and Greencore have both maintained confidence in their proposed merger.

Shareholders of both firms are due to vote on the deal in January next year.