Malcolm Walker, the founder and former chairman of Iceland, is expected to return to run the retail chain if the proposed Baugur takeover goes ahead, according to a report in The Times today.

Baugur is expected to split the business into three companies - Booker, grocery chain Iceland and Woodward Foodservice, which it is likely to sell.

BFG’s Board agreed this week to recommend a 95p a share bid from Baugur if a firm offer arose. The offer is likely to be made before December 17.

The newapaper also suggested that in the event of a takeover Bill Grimsey, the chief executive of The Big Food Group, and Bill Hoskins, its finance director, are expected to run the company’s Booker cash-and-carry division.