Chilled food company Geest has announced that it has received an approach from the Bakkavor Group, which could value the company at up to £512m.

Icelandic food group Bakkavor has built a 20% stake in Geest but said earlier this year it had no intention of making an offer.

The two companies are continuing their discussions to see if Bakkovor can make a full offer for the entire issued share capital of Geest in due course.