Iceland's Baugur is expected to make a £326m (US$624.2m) takeover offer for the UK's Big Food Group this week.

Baugur has until the end of this week to submit a formal bid. If it is successful, the company is planning to sell BFG's foodservice unit Woodwards to rival 3663, reported The Telegraph. Analysts believe Woodwards could fetch £40m.

Baugur had originally indicated a bid of 110p per share for BFG, which also owns cash and carry chain Booker and frozen food retailer Iceland, but its formal offer this week is expected to be lower at 95p per share.