The £25m (US$36.4m) MBO offer for upmarket food company S Daniel looked more likely this week after the takeover team secured cash backing from two banks, but the board of directors is cautioning that nothing has been confirmed.

A team led by former managing director John Sexton first proposed the deal a fortnight ago, but it was dismissed by company directors due to concerns over financial funding. The director’s board stressed yesterday that even with cash backing the deal might not go ahead, revealing in a statement that a survey of shareholders indicated that £25m “does not represent the true value of the company”.

The statement also added that the company has given Sexton and his team until Wednesday 5 September to improve the terms of the deal.

Founded in 1944, S Daniel controls brands such as New Covent Garden Soup and Johnson’s fruit juices.