Mr Kipling preparing to float

RHM, owner of Mr Kipling cakes and Bisto gravy, is planning a £1.5bn-plus stockmarket float.

The food group is likely to announce its plans this month, following in the footsteps of online poker site PartyGaming and the satellite firm Inmarsat.

Owner Doughty Hanson, which bought RHM for £1.1bn from Tomkins in 2000, wants to take advantage of the increased investor appetite for flotations.

And it makes sense to nip in before the August holiday season. Investment bank CSFB is preparing the float of RHM, which owns a raft of household brands including Hovis bread, Paxo stuffing and Robertson's Golden Shred marmalade.

Doughty Hanson was forced to scrap plans for a share issue in 2002 because of poor market conditions. It will want to get a move on this time round, in case investors plough their cash into other new issues.

However, reports suggest that some institutions are wary of investing in PartyGaming because of concerns that the US government may crackdown on internet gambling.

Food manufacturers such as RHM have the advantage of strong cashflow, though there are concerns about consumer spending. However Premier

Foods has performed strongly since its market debut last July. Danone's £ 500m auction of HP Foods has attracted offers from Associated British Foods and Premier Foods.