Fight for Premier's Quorn range down to two rival bidders

The debt-laden manufacturer said the auction of the brand is at an "advanced stage" after receiving bids from a number of organisations including private equity and multinationals.

Premier would not comment on speculation Swiss consumer giant Nestl is leading the bidding, which could value Quorn at more than 200m.

The Hovis-to-Mr Kipling group said there was no guarantee that a sale of its meat-free business will take place. Its shares closed down 0.43p at 18.13p.

However, Premier has already said it is open-minded about disposals as it looks to alleviate the 1.4bn debt pile built up following an acquisition spree that included Hovis owner RHM and Campbell's Soup in UK and Ireland.

Quorn was bought by Premier in 2005 when it acquired Marlow Foods for 172m.

It is said to be valued at between 200m to 250m. Premier employs 320 staff at Quorn in Stokesley, North Yorkshire, plus another 60 at Billingham in Stockton-on-Tees.

It is one of a raft of brands potentially up for sale as part of the debt reduction plan. The group began struggling under its debt burden during the credit crunch in 2008 and was forced to complete a 400m share placing to raise cash early last year.

Premier received an approach for the Mr Kipling cake business last year and there has been speculation its Hovis bread brand could go up for sale.

The first Quorn product was launched in 1985 using a specially developed protein-based ingredient called mycoprotein, and it has since become a popular meat substitute for vegetarians.

In recent years, Premier has expanded the market for Quorn beyond vegetarians to people who want to eat more healthily.

Quorn's imminent sale comes as consolidation in the food industry steps up a gear, with two of Premier's rivals, Northern Foods and Greencore, last month announcing merger plans. They are joining to create a chilled food giant with sales of 1.7bn, based in Dublin.

Nestl UK, headed by York-based chairman and chief executive Paul Grimwood, has 23 sites in the UK and Ireland including York, Halifax and Castleford.

taking A slice: There is also speculation that Premier could sell the Hovis brand.