Inter Link Foods has hit back against claims that it is unfairly blocking potential suitor McCambridge from gaining access to the company’s books.
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The UK bakery group said this afternoon (22 May) that it stands by its decision to demand McCambridge signs a confidentiality agreement before the Irish food group can start due diligence.
“Given McCambridge’s competitive position this requirement is considered by the Inter Link board to be necessary to protect the interests of all of the company’s stakeholders,” Inter Link said.
This morning, McCambridge had threatened to cool its interest in Inter Link and accused it of adopting an “unreasonable stance” towards the negotiations and access to the company’s books.
However, Inter Link has taken a firm stand, issuing an ultimatum to McCambridge. “The board therefore requests McCambridge to make a clear and unambiguous statement that it accepts the (Inter Link’s) position or that it is now withdrawing its approach.”
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By GlobalDataMcCambridge, which owns almost 9% of Inter Link, earlier this month made an approach to buy the cake maker, which is in the middle of a business review following losses over the last 12 months. However, talks between the two companies have stalled over the confidentiality agreement and McCambridge is mulling whether it should withdraw its interest.
Inter Link has issued two profit warnings so far this year. In a trading statement issued last week, the company admitted that there has been “no material change” since its last update in March, when it forecast a loss for the year ending 5 May.
However, other trade and private equity groups are understood to have declared an interest in Inter Link, which is also considering an equity fundraising to revive the company.
Inter Link has said it would cut GBP2m (US$3.9m) in costs from the business and has identified more savings under a review headed by recently installed chief executive Ian Croxford.
Some 120 jobs have already been lost at Inter Link, which operates from 12 bakery sites in the UK, and another bakery in Poland, and more could follow.
