Blackstone and BC Partners are considering hiking their offer for Birds Eye Iglo.
The private equity giants had a joint bid worth €2.5bn (£2bn) rejected by Iglo’s owner, Permira, last week.
Permira is thought to be holding out for closer to €3bn (£2.4bn). If an improved offer is not forthcoming, Permira is reportedly ready to refinance the frozen food group’s debt and could hit the acquisition trail to generate further growth.
“The bid was clearly too low and while the bidders could come back with a new figure, in the meantime Permira is pressing on with growing the business,” an Iglo source told the Financial Times.