United Biscuits prepares biscuit division auction

United Biscuits is looking to auction its biscuits division for about GBP1.5 billion after the decision of China's Bright Food to walk away from acquiring the whole company, The Mail on Sunday reported, without citing sources.

The move would put the maker of McVitie's, Penguins and Carr's biscuits up for sale at a value of about nine times last year's profits, the report said, adding that if the process goes ahead, the snacks division--making Twiglets and Hula Hoops branded products--could be sold at a later date.

The sale, which is expected to be handled by investment banks Goldman Sachs and JP Morgan, is likely to be aimed at major food firms including Campbell Soup Co. and Kraft Foods Inc. , it said.