Barclays may acquire 70% stake in French poultry firm Doux

British banking and financial services company Barclays may acquire a 70% stake in the French poultry firm Doux, a move that could save the debt-ridden company and protect nearly 3,400 jobs.

Doux, which entered into administration in June 2012, owes €140m to Barclays.

A Doux spokesperson told Reuters that the company has sent a plan to a commercial court in north-west France, which features participation as well as an equity swap for debt by Barclays.

According to the plan, Saudi company Al-Munajem would also acquire a 10% stake in the poultry firm, the news agency reported citing a source.

The €28m recovery plan will enable Doux to keep functioning during the court protection period and safeguard the jobs.

Recently, Doux received 11 takeover bids from various firms including co-operative Terrena, agribusiness firm La Financière Turenne La Fayette, poultry producers LDC and Tilly Sabco, and a consortium led by oilseed firm Sofiproteol.

La Financière Turenne La Fayette had offered €25m for two plants, Terrena had made bid of €24.7m for three plants, while Tilly-Sabco put forth an offer to take over the export operations of Doux, which include two plants.

However, the unions at Doux were dissatisfied with these offers and noted that the bids would cover only a few sites and would dismantle the company.

Doux, one of the world’s largest poultry exporters, was put into administration by a court in Quimper after the company suspended payments to its creditors.

The company struggled with high farm input prices and increased competition, and was burdened with a debt of €340m.

The Doux family currently owns 80% of the company, while French banking firm BNP Paribas holds a 20% stake.