DAIRY Farm increased its stake in discount food group Kwik Save at the weekend, amid rumours that the firm was gearing up for a full takeover bid. The purchase of 100,000 shares in Kwik Save lifted Dairy Farm's holding in the group by two per cent to 28.03 per cent. The move has intensified speculation that Dairy Farm is positioning itself for a full bid for Kwik Save, but it is expected to raise its stake to 29 per cent before launching an offer. Food sector analysts said the move seemed to have two motives - the desire of the company to cash in on the growing UK discount food market, and a trend by Dairy Farm's parent Jardine Matheson to spread assets outside Hongkong. Kwik Save is estimated to have 64 per cent of the UK discount food market, with sector sales forecast to double in the next three years.