Glitnir has confirmed it is selling its 10% stake in Iceland.

Glitnir has confirmed it is selling its 10% stake in Iceland.

Failed Icelandic bank Glitnir has confirmed it is selling its 10% stake in UK frozen food retailer Iceland Foods.

Glitnir will add its share to the auction of a 67% stake in the retailer held by fellow Icelandic bank Landsbanki.

Kristjan Oskarsson, the CEO of Glitnir, which collapsed after the 2008 financial crisis in Iceland and is currently being wound-up, confirmed today (6 September) the stake would be sold. However, he would not comment on the estimated value of the stake or the identity of interested parties.

Iceland Foods CEO and founder Malcolm Walker has made clear his desire to keep the company independent. The company's existing management collectively holds a 23% stake in the group.

Today, Walker announced that store staff will be given an "industry-beating" average pay increase of 6.3% at a cost of GBP14.6m (US$25.5m).

Last month, UK retailer Morrisons confirmed it had appointed Credit Suisse to advise it on a potential bid for Iceland Foods.