A bidding war has broken out over packaging business Field, which has a major division in Bradford.

A second US company has launched an agreed £212 million bid for the company, which employs 750 people in the city.

The bid from US group Shorewood has been recommended by the Field board and values the company at 350p a share.

The latest offer comes three weeks after Buckinghamshire-based Field agreed a 320p a share bid from US group Chesapeake.

The Field board withdrew its recommendation and advised shareholders to take no action on the Chesapeake offer as soon as it emerged Shorewood might be poised to make a rival bid.

Shorewood's move to make a cash offer opens the way for a full-scale bidding war and Field's shares jumped to 356p by lunchtime. In its statement to the stock market Shorewood said it wished to retain all the management and staff.

Marc Shore, president and chief executive officer of Shorewood, said: "We are extremely impressed with the Field management team and their employees.."

Frank Knight, chairman of Field, said the board had been unanimous in its decision to back the Shorewood offer.

Chesapeake issued a brief statement saying it was "considering its position" and would make an announcement later.

The gazumped company will have to find at least an extra £18 million if its wants to re-join the race to buy Field.

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