UPDATE 2-UK's Premier Foods looking at ways to cut debt

(Adds analyst comment, shares)

By Matthew Scuffham

LONDON, Oct 13 (Reuters) - Premier Foods (PFD.L: Quote, Profile, Research), Britain's biggest food manufacturer, said it was examining proposals from several parties that would enable it to cut debt, sending its shares higher.

Shares in the group, which have crashed from a peak of 329 pence in January 2007 amid fears over its spiralling debt following the acquisitions of RHM and Campbell's last year, were up 10.9 percent to 63.5 pence at 0911 GMT.

Premier, which makes Hovis bread, Mr Kipling cakes, and Branston pickle, had net debt of about 1.8 billion pounds ($3.11 billion) at the end of June due mainly due to the acquisitions.

Analysts welcomed the move. Citigroup, which rates the stock a 'buy' with a 130 pence price target, said it believed the market had been valuing Premier on "the weakness of its balance sheet and little else".

"A capital injection would likely remove any doubts on financing and enable the market to focus on the compelling fundamentals," it said in a note to investors.

Investec analyst Martin Deboo also reiterated his 'buy' recommendation and 140 pence price target.

"We see the leverage discount as the major overhang on Premier's equity valuation and welcome any moves to restructure the balance sheet," he said.