Big Food Group has announced it is in talks about a potential offer for the company at 110p per share.

It did not disclose the identity of the other party but speculation has surrounded the Icelandic investment company Baugur, which has built up a 22% holding in BFG.

BFG, which comprises Iceland, the cash and carry group Booker and foodservice company Woodward, said the talks were at a preliminary stage and that there could be no certainty that an offer would be forthcoming nor what the terms of any offer might be.