UK convenience foods group Geest has confirmed that it has received a preliminary takeover proposal from Iceland’s Bakkavor Group.

Geest said it made the announcement following the recent movement in its share price and press speculation.

“Discussions are continuing between Geest and Bakkavor to establish whether or not Bakkavor can put forward a revised proposal which would form an acceptable basis for entering into due diligence, which may or may not lead to Bakkavor making a full offer for the entire issued share capital of Geest in due course,” Geest said, adding that a further announcement would be made when appropriate.

In mid-June Bakkavor increased its stake in Geest to 20% but said it had no plans to make a takeover offer for the UK company.