French dairy giant Lactalis has held talks with Dairy Crest about a possible £800m takeover.

Reports suggest that Lactalis, which last week revealed that it plans to establish a common business in the chilled dairy sector in Europe with Nestlé, is considering an all-cash bid of approximately 630p a share for Dairy Crest.

However, Dairy Crest said that it had not received a formal approach or indicative offer for the company and that it was not engaged in discussions with Lactalis or any other party.