Reox Holdings has received an unsolicited bid for its consumer foods division Breeo Foods Ireland from an undisclosed suitor.

The company, which owns the Galtee, Dairygold, Mitchelstown, Shaws and Calvita brands, said it had not been up for sale and that it would consider an offer only if it represented "substantial and compelling" value for its shareholders, who are all members of the Dairygold co-op.

Reox chairman John Walsh said the board of the company, which is a spin-off from the co-op, would seek corporate finance advice to help it examine the offer. The bid, which was reported in the Farmers Journal yesterday, is likely to prompt further interest in Breeo's Irish activities from other players in the consumer foods sector.

Mr Walsh said it was business as usual for the company, which operates an informal grey market in share trading among its farmer shareholders. "The approach, which may or may not lead to a formal offer, will not distract the business from pursuing its strong market place ambitions."

Reox said in July that it planned to invest €50 million in Breeo before the end of the year.

The company has an annual turnover in the region of €240 million, according to its accounts.

Shareholder Ned O'Keeffe, who is a critic of the company's management, said it would be an "appalling decision" if the brands were sold.