Shares for The Big Food Group (BFG) rose by 3.5p to 92.5p yesterday following news that it had agreed to a £52m reduction in the value of the proposed bid from the Icelandic group Baugur.

The revised offer values the food retailer at £326m, or 95p per share, which is significantly lower than the £378m it proposed when it first approached BFG three months ago.

Its indicative offer of 110p a share in September was followed by a disappointing trading statement from BFG in October, whereby sales at Iceland slid 3.9% for the 13 weeks to October 1.

BFG owns frozen food chain Iceland and cash and carry business Booker.