Premier Foods says Japan's Nissin to take 17% stake

London

PREMIER Foods Plc, seeking to fend off an unsolicited takeover bid by US spice processor McCormick & Co, said on Thursday that Japanese instant noodle purveyor Nissin Foods Holding Co has agreed to buy a 17 per cent stake. Premier shares plunged.

Nissin will have the right to nominate one director to Premier's board, the UK company said in a statement. The maker of Top Ramen will purchase the stake from an existing shareholder, according to the statement.