LONDON, Jan 24 (Reuters) - Greencore is considering a cash sweetener to its offer for Northern Foods after its target abandoned talks over a planned merger to back a higher bid by food tycoon Ranjit Boparan, media reported on Monday.
British food manufacturer Northern Foods agreed on Friday to be taken over by Boparan in a deal valuing the business at 342 million pounds ($545 million).
The maker of Goodfella's Pizza and Fox's biscuits is recommending that shareholders back a bid of 73 pence per share by Boparan and said it had withdrawn its support for a takeover by Irish food manufacturer Greencore.
However, the Financial Times said sources familiar with the situation told it that Greencore was expected to return with a revised offer which was likely to contain a cash element, though not a full cash bid.
Greencore is expected issue an announcement to the stock exchange later on Monday, the Times newspaper said.
The daily cited a person close to the talks as saying: "Greencore very much understands the importance of cash and will take this into account when it is considering its options."
Greencore was not immediately reachable for comment.
(Reporting by Karolina Tagaris; Editing by Lincoln Feast) ($1=.6274 POUND)