LONDON, March 24 (Reuters) - Standard Life Investments on Thursday criticised the board of Premier Foods over its handling of takeover bids from U.S. rival McCormick &Co. and the purchase of a stake in the firm by Japan'sNissin Foods.
The maker of Mr. Kipling cakes and Bisto gravy rejected asecond bid from McCormick on Wednesday and instead agreed a dealwith Nissin that would see it take a 17.27 percent stake inPremier, it confirmed on Thursday.
In response, David Cumming, head of equities at StandardLife Investments, the fund arm of insurer Standard Life, whichis one of the biggest shareholders with a roughly 7 percentstake in Premier, said he wanted the company to reengage withMcCormick to try for a higher bid.
"We note with some dismay the timing of Nissin's acquisitionof a stake in Premier Foods. In our view, this does not reflectwell on the Premier Foods Board's objectivity and commitmentregarding its engagement with McCormick and consequently itsdesire to pursue maximum value for shareholders," Cumming saidin a statement.
"Although we believe the 60 pence bid indicated by McCormickis too low, we remain open to a bid at a higher level. We expectthe Premier Foods Board, on behalf of its shareholders, toengage with McCormick and pursue this option to the full." (Reporting by Simon Jessop; editing by Carolyn Cohn)