Malton Bacon Factory today played down rumours that the business is facing a foreign takeover, or management buyout.

Bosses at the firm, which employs about 2,000 people, are remaining tight-lipped over whether the rumours are true, despite city speculation.

According to a national newspaper, Unigate had previously hinted it might sell its Malton plant with a management buyout most likely.

But Ryedale MP John Greenway said the current pig industry crisis had made it tough for farmers and for large firms like Malton Bacon Factory, and that such rumours came as no surprise. "I am personally very worried about the long-term situation - and this comes less than a year after I attended a Christmas dinner at the factory where the managing director of Unigate said Malton Bacon was a jewel in the company's crown," he said.

A rumoured takeover comes hot on the heels of poor results in the first half of this year, blamed largely on higher pig prices.

In the first six months of 2000, Malton Bacon Factory had fewer pigs through its slaughter lines -this was coupled with lower priced foreign imports.

The company has come under further pressure as a result of outbreaks of swine fever in UK farms.

Mr Greenway said the lack of protection offered to pig firms by the Government was also a factor which had to be taken into account. "UK pig farmers have been struggling and the Government has done nothing to alleviate the situation," he said.

However, Trevor Hayes, factory spokesman, played down the rumours.

He said: "As a company we do not comment on rumours or speculation, and there is nothing new since the announcement made from London a few weeks ago.

"As soon as there is something new to say, an announcement will be made."