Premier chief set for £7m windfall

THE boss of P remier Foods could walk away with as much as £7m of shares if American suitor McCor - mick increases its offer for the Mr Kipling cake maker.

If McCormick raises its bid to 70p a share, chief executive Gavin Darby’s holding would be worth at least £7m.

However shareholders have criticised his handling of the talks and some suggest Darby should quit if the McCormick deal fails to go ahead.

Darby was questioned by major shareholders Standard Life and Paulson – who between them hold 14pc of the company – amid accusations he had failed to hold talks with herbs and spices maker McCormick.

Darby had instead agreed a part- nership deal with Japanese noodle maker Nissin.

Last month Nissin became P remier’s biggest shareholder after buying a 17pc stake from private equity firm Warburg Pincus at 63p a share. It has now increased its holding to 19pc.

Last week McCormick raised its offer to 65p a share. Premier Foods, which also makes Bisto and Oxo cubes, said it will enter talks with McCormick if it raises the offer again.

McCormick, which owns the Schwartz spices brand, is now completing due diligence.

The 65p a share bid values P remier Foods – including debt, equity and its pension liabilities - at around £1.5bn.

McCormick has until April 20 to make a firm offer.