24th Oct 2014 06:45
LONDON (Alliance News) - C&C Group PLC on Friday confirmed it has made a preliminary approach to gatecrash Greene King PLC's bid to buy Spirit Pub Co PLC and outlined the drivers for the deal.
The Irish drinks company, which makes Magners cider, confirmed it has made preliminary approach to the board of Spirit and said its management team "strongly believe that a combination of C&C?s brands with Spirit?s high quality, well-located pub estate is the most effective way to optimise shareholder returns in a competitive UK market".
Spirit on Thursday said it had received a bid for C&C but said it had rejected the offer. It did not define the value of the offer made by C&C. The Irish company has until November 20 to make a firm offer for Spirit or walk away.
The rival offer comes after Spirit on Monday said it was open to recommending an increased takeover offer from FTSE 250-listed rival Greene King. The new deal values Spirit at around GBP723 million, above the GBP661 million approach Greene King had made a month earlier, which Spirit said undervalued the business and its prospects. Greene King has until October 30 to make its own firm offer.
By Sam Unsted; [email protected]; @SamUAtAlliance
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