Stork said this week it is in discussions with Candover, a UK-based private equity group, about a possible buyout.

"If such discussions do lead to an offer, it will be in the form of cash, at an indicative price of €47 per share, subject to due diligence," Stork said in an announcement.

At that price the Candover offer would value Stork at €1.55bn.

"Candover has expressed a serious interest in the potential of Stork's underlying businesses and has indicated a commitment to continue the current strategy of growing the businesses through autonomous growth and acquisitions," Stork stated.

The sale would end a year-long conflict between Stork's investors and its board over the market strategy of the company.

Stork's management has been attempting to fight off the proposal, which was made by Centaurus Capital and Paulson & Co., large shareholders who want the company to concentrate solely on its aerospace division. The two investors own about 33 per cent of Stork.

Stork's food systems division accounts for 16 per cent of the company's net turnover.

The division mainly manufacters production lines for poultry, meat, dairy, juice and liquid food products markets. The division had a turnover of €326m in 2006 out of a total company turnover of €2bn.

The company claims to be the world market leader in skinning and sausage production equipment and among the top three companies producing machines for convenience food items and meal components.

In the dairy sector it claims to be the leader in UHT processing systems.

Stork's food and dairy systems unit became part of the Stork food systems unit on 30 June last year. The company also made additional investments in its food and dairy systems to beef up its product portfolio.

Last year Stork also acquired Townsend, a meat processing equipment maker in the US, as part of its growth strategy. In September the company acquired Nijal Technologie Alimentaire, a processing machine maker in France.

The acquisition is part of the company's bid to become a bigger supplier to the meat industry.

Nijal produces equipment for the high-speed production of shish kebabs, sandwiches, meatballs, formed ground meat products and sausages. It also produces equipment for denesting trays and automatic tray loading.

Stork said the discusssions with Candover are taking place with the support of the full supervisory board, including the three additional members who were appointed in January 2007.

Stork shareholders Centaurus and Paulson have been informed of the possible offer, the board noted.

The company said it would update shareholders on the offer no later than 1 August this year.