Somerfield said the offer was 'not in shareholders' interests'

Baugur said it was "reviewing its options" on the Bristol firm, including the possibility of a renewed offer.

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

It is the second time in less than two years that Somerfield has rejected a takeover approach.

Richard Ratner, a retail analyst at stockbroker Seymour Pierce, said he would be surprised if Baugur - which recently bought the Big Food Group - launched an offer without looking at the company's books.

He added: "We suspect that if it does decide to proceed along this route, then we will see a slightly increased offer, accompanied by a request for limited due diligence."

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