AB Foods hoping to bring home HP

ASSOCIATED British Foods is believed to be considering an attempt to buy back two of Britain's most enduring culinary institutions from their French owners.

The food giant, which reports its half-year figures this week, could bid for the former HP Foods, now owned by Danone.

A deal would return HP sauce and Lea & Perrins Worcestershire sauce to British hands after their sale to the French in 1988.

ABF has a cash pile of about £1.7 billion and a purchase of two such well established brands would head off any disquiet among investors that it was not making the most of this surplus. One City analyst said: 'The company has performed well recently, but there is a feeling that it is too heavily reliant on its sugar business.

'Buying these businesses from Danone could give them an important extra string to their bow.'

The company is expected to confirm next week that strong sales from its British Sugar division have driven half-year profits to £231 million compared with the £216 million achieved last year.

Associated British Foods declined to comment.

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