Arla Foods UK has confirmed it is in advanced talks for its parent company, Danish co-operative Arla Foods Amba, to make an offer for the remaining shares it does not own.
Arla Foods Amba already owns 51% of Arla Foods UK, the country’s largest supplier of milk to supermarkets.
The two sides disclosed they had begun discussions about a possible takeover in October.
Negotiations stalled at the end of the year as the companies reportedly failed to agree over how to fill a £143m deficit in Arla Food UK’s pension fund.
But talks seem to be back on the table, as media speculation over the weekend claimed a £430m takeover deal would be finalised this week.
In a statement Arla Foods UK, the company behind Cravendale, Lurpak and Anchor butter, confirmed discussions which could lead to a cash offer of 71p a share were continuing.
But there was no certainty an offer would be made, or on what terms, it said.
Shares in Arla Food UK were up 4.50p, or 7% this morning (Monday 15 January) following confirmation of talks.
London Stock Exchange