Premier Foods' acquisition deal is currently heating up as McCormick & Co. offers higher takeover bid. And the British company behind Mr. Kipling cakes has finally agreed to meet the American spice and sauces manufacturer after it increases its proposal to $2.2 billion (£1.5 billion).

While Premier Foods still insisted that McCormick's offer is too low, the company's board has finally decided to discuss the takeover proposal. According to The Guardian, the proposal discussion came after the company has come under pressure from stockholders over the way it has been handling the takeover approach.

The Premier Foods' board, however, is hopeful that the meeting will make McCormick increase its takeover offer to a "recommendable level." The company also stressed that McCormick also have "to demonstrate that any revised proposal is deliverable."

"The board has informed McCormick that it will be expected to provide an improved proposal following these meetings," Premier Foods said.

Premier Foods has already rejected the 52 pence and 60 pence bids and has formed a partnership with Japanese company Nissin Foods Holding Co. last week. And Bloomberg notes that McCormick's latest offer is 65 pence per share, which values its proposal to $2.2 billion (£1.5 billion), including debt.

Meanwhile, Premier Foods ignited criticisms from some of the company's investors last week after it rejected McCormick's previous takeover bid offers and agreed to an international tie-up with Nissin. Hence, shareholders urged the company to hold talks with Sparks, Maryland-based McCormick.

The potential takeover proposal would complement McCormick's U.K. brand Schwartz with Premier Foods' famous stable of gravy brands, cooking sauces and dessert mixes. It would also merge the Premier's well-known British brands Mr. Kipling cakes, Bisto gravies and Oxo seasonings with McCormick's spices, Lawry's seasonings and Thai Kitchen meals.

In addition, the Premiere Foods-McCormick merger would also aim to boost profits by streamlining, just like Kraft Heinz Co. last year, Reuters reports. And as per Shore Capital analysts, McCormick's revised proposal is a "good compromise" offer.

"We see 65p as a good compromise price, allowing Premier's management to highlight the extra value it has extracted from McCormick, whilst also offering shareholders the opportunity of a cash exit today at a reasonably full EBITDA (core earnings) valuation," analysts said.

Under British takeover rules, McCormick has until Apr. 20 to make a firm offer to Premier Foods. In other news, McCormick stock increased 1.28 percent to $98.61 in pre-0market trading on Tuesday, The Street reveals.