Former bosses of T&S Stores have joined with Kaupthing Bank to propose a rival bid for wholesale distributor Londis, which has already recommended a £60m (US$107.4m) takeover bid from Ireland’s Musgrave.

Kaupthing Bank, together with Geoff Purdy and David Crelin, will own bid vehicle Lancelot, which has proposed a rival bid that will value Londis at £60m but also enable Londis shareholders to keep majority ownership, reported Reuters. As part of the bid plan, Purdy would become CEO of Londis, while Crelin would become finance director.

Lancelot has put its proposal to KPMG Corporate Finance, which is handling the Londis sale.

“Our proposal gives shopkeepers the best of both worlds,” Purdy was quoted by Reuters as saying. “They will not only receive good value for part of their share of the business but also, they will retain a majority stake so that they can benefit from the rewards of the turnaround of the company.”

Private equity firm Bridley Capital Partners is also reported to be mulling a bid for a minority stake in Londis. Bridley is expected to name its financial backer this week for a possible bid, reported the Financial Times.

The company has been talking to certain Londis shareholders who are unhappy with the Londis board’s decision to recommend an outright sale of the company to Irish retailer Musgrave. The dissident shareholders have been talking to various parties in the hope of attracting a minority bid instead.