Shareholders in Egypt's Bisco Misr have agreed to sell a controlling stake to Kellogg as the world's largest breakfast cereal maker won an $87 million takeover battle for the cake and biscuit producer.

Emerging markets private equity firm Abraaj said last week it would withdraw from a bidding war with Kellogg that had driven up the offer price by more than 20 per cent.

Shareholders controlling 59.91 per cent of the company's shares agreed to sell at 89.86 pounds per share, Bisco Misr said in a statement on Tuesday.

The tussle over Bisco Misr is part of a flurry of mergers and rights issues boosting activity on the Cairo bourse, which has struggled to revive investor confidence in the turmoil that has followed the 2011 Arab Spring uprisings.

There has also been a takeover battle for Arab Dairy .

Kellogg had indicated it was willing to buy 100 per cent of the Bisco Misr and would only accept a controlling stake.

It scuppered an effort by Abraaj to snap up the Egyptian company, which is an established brand with three factories in Cairo and Alexandria. – Reuters