Food and agribusiness group IAWS has spent €36.6 million lifting its stake in Swiss baker, Hiestand, from 21 per cent to 32 per cent.

In a statement to the stock exchange last night, the company confirmed the purchase but said it was not currently planning to buy more shares in the Swiss firm.

IAWS chief executive Owen Killian said Hiestand had been "an excellent investment" for the company since it was purchased two years ago.

He said the "continued strong performance" of Hiestand had encouraged IAWS to raise its shareholding.

"We have no current plans to further increase the level of this investment," Mr Killian added. His use of the word "current" will give rise to speculation that further purchases could be considered at some point in the future.

IAWS acquired 22 per cent of Hiestand in July, 2003 for €26 million.

At that stage, the deal was seen as an opportunity for IAWS to become involved in new markets, with Hiestand counting bakery operations in Switzerland, Germany, Poland, Austria, Malaysia, Singapore and Japan within its portfolio.