A number of suitors have been eyeing Somerfield

United Co-operatives has approached Somerfield "with a view to exploring the possibility of making an offer".

Somerfield has previously said it is in talks with a number of potential buyers - which are thought to include Icelandic retail group Baugur.

Shares in the firm closed up 4.5p, or 2.28%, to 202 pence on the London Stock Exchange following the news.

United Co-operatives runs 500 convenience stores in the North Midlands, North West and Yorkshire and also has funeral, travel, motor trade and healthcare operations.

We are at an early stage in the process Peter Marks, United Co-op's chief executive Check Somerfield's share price

'Financial sense'

The UK's largest independent co-operative is a completely separate entity to the Co-op group which runs convenience stores under the same name.

"We are taking a look at Somerfield because we believe a combination of our businesses could make sound commercial operational and financial sense. However we are at an early stage in the process," chief executive Peter Marks told the BBC.

In February, Baugur kicked off interest in the supermarket chain by making a �1bn offer which Somerfield rejected saying it was uncertain whether the proposal would deliver a formal offer at an "appropriate level" to shareholders.

Meanwhile, two other groups are believed to have made �1bn-plus offers for the firm.

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 reports, have tabled a 190p-a-share bid.