Milan-listed Newlat last month said it had made a non-binding offer for 134-year old Hovis, which is owned by Premier Foods and The Gores Group.

Newlat said in a statement that it was still interested in the acquisition but it had informed Hovis' shareholders that it did not intend to join in a competitive tender.

"The negotiation will be resumed only in the event that the shareholders of Hovis grant, on the basis of the non-binding offer, an exclusive negotiation period to Newlat Food," it said.

Newlat was prepared to spend around 100 million pounds to buy Hovis, a source close to the matter had told Reuters.

(Reporting by Giulio Piovaccari; editing by Valentina Za)