Entrepreneurial duo, John Lovering and Bob Mackenzie are due to increase their offer for Somerfield this week.

Lovering, the chairman of Peacocks and Mackenzie, the former chief executive of National Car Parks are now preparing a bid between 110p and 120p a share, in a deal worth up to £594 million.

The supermarket chain rejected the original offer of 103p a share, refusing to talk to the pair. However, the bidders are not willing to mount a hostile bid. And maintain no formal bid will be put forward without having the Somerfield board on side.

Shares closed on April 25 at 93.25p well below the offer. John von Spreckelsen, the chairman of Somerfield said: The board considers that the price indicated fails to reflect the value of the business.' The group has 56,000 employees and is the UK's fifth largest food retailer. The supermarket's financial year ended on Sunday and is expected to report pre-tax profits of £22.5 million.