Somerfield shares have soared since the start of the year

Its board is reported to be meeting in the next few days to discuss which of two �1bn plus bids it will recommend.

One offer, valued at 205p a share, comes from a group led by Iranian property tycoon Robert Tchenguiz.

The other involves brothers Ian and Richard Livingstone, of London & Regional Properties, who, according to the FT, have tabled a 190p a share bid.

Baugur bid?

However, another potential suitor is retail group Baugur, which last month said it was considering a new bid for Somerfield after its original �1bn takeover offer was turned down.

Somerfield rejected Baugur's plan, saying it "would not be in the interests of shareholders".

The Icelandic group already owns a 5% stake in Somerfield, which operates 500 Kwik Save stores as well as 700 shops under the Somerfield brand.

Baugur is rumoured to be keen to merge the operations of Big Food group, which it bought last year, with the Somerfield group.

This is the second time in less than two years that Somerfield has rebuffed a takeover attempt.