Chief executive David Dilger told the Sunday Tribune that potential bidders will have to dig deep. "The best defence to a takeover is a high share price, " he said. "Other than that, there's nothing else that management can do."

The exit from sugar "paves the way for potential corporate action in terms of Greencore becoming a target for further consolidation of the UK convenience food sector", said Paul Meade of NCB Stockbrokers.

Interest in Greencore could also come from closer to home according to Stuart Draper of Dolmen Butler Briscoe. "The greatest synergies would probably lie with an Irish food company such as Kerry, IAWS or Glanbia, " Draper said. "You couldn't rule out any of the Irish food companies being involved in Greencore's future."

Any takeover approach would put millionaire financier Dermot Desmond in the role of kingmaker at the food group. The financier spent 125m building a 22% stake in Greencore in 2003.

"It's a compliment in some ways to be thought of as a attractive takeover target because it proves you're doing a good job, " Dilger said.

He said management's job is "to maximise the value of the business and we didn't need this week's deal to do that because our prospects are excellent".

The long-awaited decision to exit the sugar business will also unlock a 80m- 150m property windfall for Greencore, because it is expected to sell off its factories in Carlow and Mallow.

The 320 acre Carlow site is particularly valuable because of its central location in a key town in Dublin's commuter belt. Greencore has earmarked 43m to cover environmental clean-up and demolition at the two factories, although this should be covered by restructuring aid the EU will pay for getting out of the sugar business.