Law firm King & Wood Mallesons has removed itself from acting for bidders on a proposed takeover of Capilano Honey, after the firm was also involved in commissioning a damning report on the target's products.

The Australian Financial Review understands Mallesons fronted up about the conflict shortly after the August 13 agreed $190 million deal between Capilano and suitors Roc Partners and Albert Tse-backed Wattle Hill was announced.