Iceland Foods chief executive and minority owner Malcolm Walker is in talks with Goldman Sachs about funding to retain control of the UK frozen foods specialist, sources close to the situation have told just-food.

Walker has made it clear that he is focused on keeping the company independent. As a result, the chief executive has engaged in talks with banks and financial advisers in a bid to raise the finances, a source told just-food.

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At the end of last month, failed Icelandic bank Landsbanki said it will formally kick off the sale of its majority 67% stake in the UK retailer.

If Iceland was able to raise finance through a bank, the frozen food company would not need to involve a private-equity partner.

“[Walker] has also made it pretty clear that they would prefer to do it without involving a private-equity partner,” the source said. “That would be very much their second choice. They would prefer to do it by borrowing the money if it can be done. I don’t think they will have any problem with funding, but there will come a point when, if other people are prepared to offer a very silly price, then it may become hard.”

Speculation has linked the likes of Asda and Morrisons to a potential bid, said to be valued at between GBP1.4bn (US$2.26bn) and GBP1.6bn.

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“We don’t know what, if anything, they are going to offer,” the source added. “Malcolm and the rest of the management team are in a position where they don’t have to put together a competitive offer for the company. They have pre-emptive rights so they can just sit back and wait and see what anyone else offers and then all they have to do is match it if they can. But clearly they need to be in a position to make that matching offer if the opportunity arises, which is why they will be having talks with banks and other financial advisers to get that funding in place.”

RBS analyst Justin Scarborough has suggested that Walker and the Iceland management team are in a “strong position” to become the “ultimate owners” as they “know the business inside out”.