Musgrave faces rival bidder for Londis

British convenience stores co-operative Londis  has received a rival £60 million (€90

British convenience stores co-operative Londis  has received a rival £60 million (€90.3 million) offer for the business from Iceland's Kaupthing Bank through a vehicle named Lancelot.

Londis has already received an offer of the same value from Irish retailer Musgrave that has the backing of the current board.

The Cork-based retailer had raised its bid by £20 million from an offer late last year to see off bids from two other shortlisted competitors, the Co-op and off-licence chain, Threshers. Londis Holdings' adviser, KPMG Corporate Finance, is known to have spoken to 10 potential buyers during the last four months.

Last year Londis's retail turnover topped £1 billion, while its wholesale revenues were £500 million.

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However, under Lancelot's proposals, Londis would remain independent, with shopkeepers retaining a majority interest in the business while each receiving a total of about £31,000 split between cash and shares.

Lancelot said a new management team would be appointed to improve the Londis operation and provide better terms, product range and services to the retailers.

Lancelot has proposed the new management team be drawn from Londis and Kaupthing Bank, Iceland's largest bank. Kaupthing Bank will be acting as financial backer for the transaction.