Robert Schofield, Premier's chief executive is understood to have rejected the approach to sell Mr Kiplings 'exceedling good cakes' to United Biscuits for £250m.
Mr Schofield is under additional pressure to justify his efforts to keep Premier intact and its debt burden. This week, he will update the City on the company's trading performance, which is understood to be strong. More on This story
However Premier Foods, have said that they will pay its banks nearly £5m to delay a test to its banking covenants until next spring and confirmed that it will scrap its dividend payment.
Shares in the company behind the Mr Kipling, Hovis and Branston Pickle brands, fell 13.11% this morning to 26.5p, after admitting it will postpone a test of its banking covenants due on December 31 until to March 31 next year.
Premier Foods said it would pay its banks a fee of £4.9m in relation to the delay.
The company, Britain's biggest food manufacturer, has debt of £1.8b while its market value is just £200m
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