The Reykjavik based group, which has seafood production operations in the United States, Britain, Europe and Asia, was the subject of much speculation recently when the private equity Triton Partners tried to buy the business outright. Despite several days of talks the bid eventually collapsed.

Icelandic then announced that it would sell off its North American operations (Icelandic USA) and its interests in Asia, retaining the European and UK production sites. The British sites are all based in Grimsby with Coldwater Seafoods and Seachill employing over 1,200 people between them.

Earlier High Liner Foods of Canada made an audacious 340-million euro offer for the whole business, but it was not taken up. High Liner are expected to come back into the fray, targeting Icelandic USA which is based in Newport News, Virginia

The Board of Directors of Icelandic Group said they had engaged BofA Merrill Lynch to act as exclusive financial advisor to the Group in connection with a review of strategic alternatives. These strategic alternatives could include, among other things, dispositions of one or more of the Group’s businesses as well as equity financings.

A total of five parties submitted proposals to handle the sale.. Following a detailed review, the Board decided to retain BofA Merrill Lynch, citing the firm’s extensive experience providing financial advice and assistance to seafood companies operating throughout the world.

A group statement added: "Merrill Lynch International (“BofA Merrill Lynch”), a subsidiary of Bank of America Corporation, is acting exclusively for the Icelandic Group in connection with the review of strategic alternatives and for no one else and will not be responsible to anyone other than the Icelandic Group for providing the protections afforded to its clients or for providing advice in relation to any proposed transaction."

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