Reckitt denies job clause attached to Colmans bid

Food group Reckitt and Colman refused to comment on speculation last night that it had turned down an offer for its Colmans mustard subsidiary after failing to secure a guarantee on jobs at its Norwich plant. The company admitted that Danone, a Fr ench group whose products include HP sauce and Lea and Perrins, had been among the interested parties and that the bidding was now at shortlist stage.

However, the company declined to say that Colmans had attached a jobs clause to the bid process. One Colmans director said: "We are going through the normal auction process and a number of people have been interested but we are not yet in a position to say anything. I also don't really think you can include a jobs clause in the bid."

But another source close to the company said that if a number of bids were similar on price, the company was likely to prefer the suitor that would offer more commitment on jobs.

Reckitt and Colman is known as a paternalistic employer. It was founded in 1810 and is run by Sir Michael Colman, a direct descendant of the founding family, who started his career at the mustard factory in 1949.

Norwich has already been hit by job loss announcements in recent months. Last autumn Nestle announced that it was to cease chocolate production at the Norwich plant of Rowntree Nestle at a cost of 900 jobs. Rhone Poulenc, the French chemicals group, is also reducing staff numbers in the city.

Reckitt & Colman is believed to be hoping for around £400m from Colmans. Danone confirmed it was among the bidders in October. Others believed to be in the hunt are Unilever and Corn Products, the American producer of Marmite and Bovril.