British food retailer the Big Food Group (BFG) said yesterday it was still interested in British grocery supplier Londis, but would study Musgrave’s offer before making a decision on whether to bid.

MUSGRAVE'S plans to take over British retail chain Londis received a setback over the weekend when the owner of the Iceland food chain signalled it may be preparing a counter-bid to challenge the Cork-based group's €90 million offer.

Bill Grimsey, the chief executive of Big Food Group, is putting more pressure on Londis shareholders in an attempt to win support for its £40.3m (€57m) indicative offer for the business.

The Big Food Group has urged shareholders of Londis Holdings to reject the recommended offer made by Cork based Musgrave.

The group that own Iceland say promotions helped improve sales at its struggling supermarket chains.