The directors of Brumby's today (29 May) recommended that shareholders in the Australian bakery group accept the takeover offer from Retail Food Group (RFG).

"The directors unanimously recommend that shareholders accept the offer from RFG in the absence of a superior offer," Brumby said in a statement to the Australian stock exchange.

Earlier this month (4 May) RFG, which holds a 15.59% stake in the company, made a cash offer of A$3.40 (US$2.79) per share.