‘Bisto’ firm Premier Foods shares slump as talks end

Spice manufacturer McCormick has abandoned takeover talks with Premier Foods, saying the UK maker of ‘Mr Kipling’ cakes and ‘Bisto’ gravy demanded too high a price. Premier Foods shares plunged as much as 31%.

McCormick said yesterday that the price the company’s board is asking won’t benefit its own shareholders after a review of Premier’s finances.

The failed talks will put pressure on Premier chief executive Gavin Darby to deliver growth for shareholders. After spurning McCormick’s initial approaches, Premier signed a co-operation agreement with Japan’s Nissin Foods Holdings that included Nissin taking a stake in the UK company. Shareholders objected, urging Premier to begin negotiations with the US suitor.