PREMIER Foods is to consider offering a slice of its Hovis business to outside investors in a bid to revive the company's bread division.

The group, whose brands include Mr Kipling and Bisto, has appointed Ondra Partners to assist in developing options for the business, which could include co-investment by a partner.

According to reports, Premier could spin out the bread business into an entirely separate company, which would be jointly owned by Premier Foods and a new investor.

St Albans-based Premier said today: "There can be no certainty that a transaction will follow at any point in the future, but the company will provide updates as appropriate."

An outright sale of the bread arm is not thought to be under review, having been considered by a previous management team last year.

Premier, which has debts of £890 million following a spending spree which included the owner of Mr Kipling, has sold a number of businesses, including Sarson's vinegar and Haywards pickles.