Kerry Group pulls plans to sell unit - report

DUBLIN, March 2 (Reuters) - Irish food group Kerry (KYGa.I: Quote, Profile, Research) has pulled plans to sell its 100 million euro ($151.9 million) plus fruit ingredients business with price believed to have been an issue, the Sunday Business Post reported.

The newspaper quoted a Kerry spokesman as saying discussions had been terminated and it had decided not to divest the business. The company was not immediately available for comment.

Kerry (KYGa.L: Quote, Profile, Research) said last year it had been approached by a suitor and talks had taken place which "may or may not lead to the sale of the business".

Kerry acquired specialist fruit company Ciprial in 1996, which had operations in France and Italy. It was estimated to have paid 69 million euros for the business.

The Sunday Business Post, quoting a source, said talks with a group had reached an advanced stage but the price offered was deemed insufficient.

Irish media reported last year Industri Kapital was in talks with Kerry over the business. The Swedish private equity firm said then it did not comment on rumours.

Kerry, whose brands include Wall's sausages, Homepride flour and Cheesestrings snacks, said last week the global credit crisis has made acquisitions cheaper and it expected to make more of them in the future. (Reporting by Jonathan Saul; Editing by Erica Billingham)