POLYTHENE film maker British Polythene Industries has escaped a £114m hostile bid by packaging group Macfarlane after a battle lasting three months.

Macfarlane said it had secured 35.1 per cent of acceptances for its offer and, accordingly, its bid had lapsed.

In response, BPI, which has an operation in Stockton employing 350 staff, said it wished to thank its shareholders "both large and small, for their support during what has been a challenging time for the company".

BPI added it would be mailing information to shareholders relating to its planned return of capital - it has said it would buy back 30 per cent of shares through an offer at 320p-a-share, spending £35.4m. The share buy-back had been above Macfarlane's offer of 310p-a-share.

Macfarlane posted its original offer in September.

The battle for BPI had taken another twist earlier this month when it emerged the group was in talks with a potential white knight bidder, although this came to nothing.

Yesterday, BPI chairman Cameron McLatchie said: "From start to finish, our defence was based on value.

"The board has always been and continues to be prepared to enter into discussions with any party which proposes making an offer for the group at a level which, in the board's view, would enhance shareholder value."