23rd Oct 2014 17:02
LONDON (Alliance News) - Spirit Pub Company PLC's potential takeover by Greene King PLC took a twist Thursday after confirmed that it had received a preliminary approach from C&C Group PLC over a possible offer.
Spirit said its board had reviewed C&C's proposal and rejected it.
The confirmation comes after Spirit said Monday that 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.
"The board of Spirit has indicated to Greene King that it would be willing to recommend an offer at the level of the revised proposal to Spirit shareholders subject to the satisfactory resolution of the other terms of the offer. Accordingly, the board is in discussions with Greene King in relation to these terms," Spirit said in a statement Monday.
Under the UK Takeover code, C&C has until November 20 to either make a firm offer for Spirit or walk away. Spirit noted that there could be "no certainty" that an offer will be made, or the terms on which any offer might be made. Greene King's deadline to make a firm offer or walk away is October 30.
Shares in Spirit Pub closed up 5.2% at 107.52 pence, C&C closed down 2.6% at EUR3.92, and Greene King closed up 1.0% at 797.00 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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Related Shares:
C&C GroupGreene King