US-based private equity firm Gores is believed to be in talks with Premier Foods to buy the latter's stake in Hovis division.
Premier Foods is reportedly struggling to overcome a £1.3bn debt, which includes a pension deficit.
In November 2012, the company hired Ondra Partners to search for outside investors for the bread unit.
Gores is thought to have come up with a bid to acquire the Hovis division that could outweigh proposals from Sun European Partners and PAI Partners.
In October, Premier CEO Gavin Darby was quoted by Reuters as saying that the company had no plans to divest Hovis business and was focused on expanding it.
However, the company stated that options were kept open.
"I tend to come from a background of trying to grow things, so we are working hard on a growth strategy for Hovis," Darby added.
After losing a number of contracts, the company had shut three bakeries and two mills this year, eliminating 1,000 jobs.
