Foods group Greencore is understood to be one of three bidders for the British ready meals group Hazlewood Foods. Greencore is thought to be in competition with two venture capital-backed groups for Hazlewood which currently has a stock market valuation of £255 million sterling (€444 million).

Greencore chief executive Mr David Dilger refused to comment, but it is no secret that the group's current strategy is to expand its consumer foods business. Earlier this year, Greencore withdrew from a bid for the British ready meals group, Perkins Foods, over differences with the Perkins management.

Since then, Greencore has spent €48 million (£37.8 million) on The Roberts Group, a British manufacturer of frozen savoury products and desserts. Greencore has been criticised in the past for the speed at which it is diversifying from the original sugar business. But industry sources believe that there are indications of a greater urgency now in the search for acquisitions. Apart from the approach to Hazlewood, Greencore - and also IAWS - are being linked to possible bids for the Jacobs biscuit business that is being sold off by French foods giant Danone.

Hazlewood had sales last year of £775 million and operating profits of £38.1 million sterling. Various exceptional items resulted in a pre-tax loss of £400,000 sterling. The shares are currently trading at 108p sterling and the Hazlewood board is thought to be hoping to drive the final take-out price to 130p. Greencore, however, has a history of not over-paying and industry sources believe the group is likely to walk away rather than pay that sort of price, especially after the profits warning from Hazlewood in September.

Greencore and the two venture capital-backed groups are thought to have made indicative offers, none of which is acceptable to Hazlewood for various reasons. Both Greencore and IAWS are being linked with possible bids for the Jacobs biscuits business in Ireland and the UK, which has been valued by analysts at around £100 million sterling (€170 million). Jacobs has the biggest share of the Irish biscuit market and has a small 7 per cent share of the British market. The combined Irish and British business has estimated sales of £120 million sterling and profits before interest and tax of £11 million sterling.