Spice maker McCormick and Co has sweetened its takeover offer for Mr Kipling cakes firm Premier Foods, upping the price to 65 pence per share.

It’s the third proposed offer by its US suitor, which owns the Schwartz spice brand.

Premier, which also owns Oxo and Sharwood’s, rejected McCormick’s first offer of 52p in cash per share, and a second at 60p in cash per share, saying they ”significantly” undervalued its future growth.

The latest twist in the takeover saga comes as Premier Foods revealed last week that Japanese noodle giant Nissin Foods had bought a 17.27 per cent stake in the business at 63p per share. But the US firm said its latest sweetened proposal "should be well received by Premier Foods' shareholders, employees, pensioners, creditors, and other stakeholders".

It added: “McCormick continues to believe that, with its 127-year heritage, it would be an outstanding custodian for the Premier Foods brands.” It said its deal would be attractive whether Nissin continued to co-operate with Premier or not.