Twinkies baker opens door to bids

(Adds Teamsters and other background, last 4 paragraphs)

By Carey Gillam

KANSAS CITY, Mo., Nov 7 (Reuters) - Interstate Bakeries Corp (IBCIQ.PK: Quote, Profile, Research, Stock Buzz), the bankrupt baker of Wonder Bread and Hostess Twinkies, agreed on Wednesday to open its books to rivals and set a starting price of $580 million for any bidding war.

Lawyers for Interstate Bakeries (IBC) told the U.S. Bankruptcy Court for the Western District of Missouri that it had agreed to give Los Angeles-based investment fund Yucaipa Cos and the U.S. arm of Mexico-based Grupo Bimbo (BIMBOA.MX: Quote, Profile, Research, Stock Buzz) access to IBC management, facilities and advisors so the group could spend the next four weeks conducting due diligence to prepare a bid for Kansas City-based IBC.

The move came two days after Interstate Bakeries Corp filed its own reorganization plan, which sets up a "stalking horse bid" worth about $580 million that hinges on financing by Silver Point Finance, LLC.

"There is $580 million in value on the table right now," IBC attorney Anthony Clark told the court, saying the company welcomed competing offers from the Yucaipa group and others for Interstate Bakeries Corp, one of the largest U.S. commercial bakers and distributors of fresh-baked bread and sweet goods. Yucaipa, which is controlled by billionaire Ron Burkle, and Bimbo Bakeries USA filed court papers last week indicating their interest in bidding for IBC. And, significantly, they have the support of the International Brotherhood of Teamsters, which represents about 10,000 IBC workers.

The Teamsters have steadfastly refused to agree to about $300 million in concessions sought by IBC. Interstate Bakeries Corp said again on Wednesday that its deal with Silver Point is contingent upon concessions from the Teamsters and Clark said management still hoped and believed an agreement between IBC and the Teamsters was possible.

But Richard Volpe, director of the Teamsters Bakery Conference, scoffed at such assertions and said because there was no agreement between IBC and the Teamsters, the Silver Point plan was "not a real deal." Competing deals need not match or exceed the $580 million as IBC indicated, he said.