Inter Link Foods, the UK's second largest manufacturer of private label and branded cakes, has confirmed that it is in talks with a private equity group on plans for a possible takeover.

In a statement to the London stock exchange today (25 September), Inter Link said that any offer was "likely to be substantially in excess of the closing mid-market price on Friday". The company's close valuation on Friday was GBP47m (US$89.42m).

Weekend reports in the UK press have suggested that an offer could be in the region of GBP66m.

By mid-morning Inter Link shares were trading at 485 pence per share, having risen by 18.29% from Friday's close.

However, the company warned: "Talks are at a very early stage and there can be no certainty that a formal offer will be made."