German baker concedes takeover

Barilla is already the world's biggest pasta firm

After only a week's resistance, German baker Kamps has agreed to be taken over by Italy's Barilla, the world's largest pasta producer.

Kamps' change of heart came after the Italian firm raised its offer by 50 euro cents to 12.5 euros (£7.7; $11.1) per share.

The deal is to be approved by shareholders at Kamps' annual general meeting later on Tuesday.

The quick resolution of what had looked like becoming a protracted takeover struggle has snuffed out chances of a bidding war.

A number of other food-industry giants - including America's Sara Lee - were believed to have been eyeing the German firm.

Doing nicely

Earlier on Tuesday, Kamps said its operating profit had risen 5% in the first three months of the year, to 18.3m euros.

The firm has built itself up into Europe's biggest baker chain by means of a prolonged campaign of acquisitions in Germany's once-fragmented food business.

The Barilla offer scarcely seems generous: it comes in precisely at the firm's current market value, and some way below the 12.7-euro highs its shares have hit since the bid was announced.

Two years ago, its shares were in excess of 35 euros.