FOOD retailer Malcolm Walker is bidding to take back full control of Deeside-based frozen food chain Iceland Foods.

According to weekend reports, he has offered £1bn for the remaining shares of the group he founded before selling it a decade ago.

Mr Walker and other management already own about 24% of the business. The remainder of the shares are currently owned by Landsbanki and Glitnir, two collapsed Icelandic banks.

But those banks have already turned down Mr Walker’s offer, according to the reports, on the grounds that his bid price is too low.

It is also thought that a rival bidder has offered £1.4bn, suggesting Mr Walker and his management team will have to raise more funds if they are to be successful.

Mr Walker built Iceland up from scratch when founded it in 1970. He lost control of the group in 2001 when he stepped down as chairman. He was cleared of insider trading after his share dealings were investigated by the Serious Fraud Office.

The group was delisted from the Stock Exchange in 2005, after Iceland- based retail group Baugur bought it. Baugur specialised in retail investment, having stakes in Hamleys, House of Fraser and Oasis, among others.

Baugur paid £336m for Iceland at the time. The Icelandic investor restored Malcolm Walker to the top job at the company.

Iceland currently operates 750 frozen foods stores and 30 Cool Trader outlets, also founded by Mr Walker, throughout the country.