Insider Media Limited

Harry Ramsden owner Ranjit Boparan has been told he must clarify his intentions about a possible offer for the Northern Foods brand. The Panel on Takeovers and Mergers has told the Birmingham businessman to confirm his reported £300m bid for the company, or bow out.

The involvement of Boparan has prompted speculation he will launch a £300m counter bid to rival Northern's proposed merger with Greencore.

To date, Boparan Holdings has not made a firm offer for Leeds-based Northern despite its December confirmation that it was at a preliminary stage in evaluating a possible cash offer for the business and had requested information.

Boparan has now been compelled by the panel to either announce a firm intention to make an offer for Northern - including the terms of any offer - or announce that it does not intend to make an offer for Northern by 21 January, in advance of Northern's shareholder meeting on 31 January.

In the event Boparan announces it does not intend to make an offer, it would be disallowed from making an offer, without the consent of the Panel Executive, for a period of six months.

Northern's board reiterated that 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.

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

It is thought any bid made by Boparan may jeopardise the merger plans.