Dairy Farmers of Britain is "highly unlikely" to be sold as a single entity, industry sources have claimed.
Last week, the farmer-owned co-operative reported that it had received an "unsolicited serious approach" for the business and revealed that negotiations had been opened with a third-party business.
A spokesman refused to confirm whether the bid was for the whole business or only part, but said PriceWaterhouseCoopers mergers and acquisitions advisers had been hired to review the approach.
However, it was unlikely the bidder had put in an offer for the entire business, a city analyst told The Grocer. "It's more likely to be a piecemeal thing. If you look at who's in a position to buy, there are not too many who straddle both milk and cheese," he said.
Lactalis, First Milk and Dairy Crest have been cited as potential bidders for the cheese assets, which include brands Somerset brie and Cadog Welsh Cheddar.
"The jewel in the crown is the Lubborn site," added an industry consultant, who asked not to be named. "I would have thought there would be significant interest in the soft cheese side, which has had a lot of money put into it. But I can't imagine anyone would go in to buy the whole business, unless PWC insisted on an all-or-nothing sale."
The milk side of the business had struggled as competitors introduced more modern facilities, while intense competition in the middle ground had eroded margins, he added.
Although DFB was not officially up for sale, the £562m company has been under heavy scrutiny since cancelling a half-yearly payment on members' accounts last year, thought to be worth £1.75m.
The pressure was exacerbated by high-profile management departures and two reductions in the farmer milk price this winter.
"DFB is committed to achieving the best outcome for the long-term benefit for its farmer members and will therefore explore any opportunity that will enhance member value," said a company statement.
Last week, the farmer-owned co-operative reported that it had received an "unsolicited serious approach" for the business and revealed that negotiations had been opened with a third-party business.
A spokesman refused to confirm whether the bid was for the whole business or only part, but said PriceWaterhouseCoopers mergers and acquisitions advisers had been hired to review the approach.
However, it was unlikely the bidder had put in an offer for the entire business, a city analyst told The Grocer. "It's more likely to be a piecemeal thing. If you look at who's in a position to buy, there are not too many who straddle both milk and cheese," he said.
Lactalis, First Milk and Dairy Crest have been cited as potential bidders for the cheese assets, which include brands Somerset brie and Cadog Welsh Cheddar.
"The jewel in the crown is the Lubborn site," added an industry consultant, who asked not to be named. "I would have thought there would be significant interest in the soft cheese side, which has had a lot of money put into it. But I can't imagine anyone would go in to buy the whole business, unless PWC insisted on an all-or-nothing sale."
The milk side of the business had struggled as competitors introduced more modern facilities, while intense competition in the middle ground had eroded margins, he added.
Although DFB was not officially up for sale, the £562m company has been under heavy scrutiny since cancelling a half-yearly payment on members' accounts last year, thought to be worth £1.75m.
The pressure was exacerbated by high-profile management departures and two reductions in the farmer milk price this winter.
"DFB is committed to achieving the best outcome for the long-term benefit for its farmer members and will therefore explore any opportunity that will enhance member value," said a company statement.
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