23rd Sep 2014 16:15
LONDON (Alliance News) - Greene King PLC confirmed Tuesday that it has approached the board of Spirit Pub Company PLC over a potential combination of the two companies, but Spirit said it had rejected the 100 pence a share approach because it undervalued the company and its prospects.
In a statement, Spirit Pub said that it had received a "highly preliminary and conditional approach" from Greene King over a possible offer at a value of 100 pence per share in Greene King shares on September 15.
Spirit Pub said it had rejected the proposal on September 18 as it concluded that it undervalued Spirit and "its attractive prospects."
Under the UK takeover code Greene King has until October 21 to either announce a firm intention to make an offer for Spirit or walk away.
Spirit Pub reiterated confidence in the execution of its strategy as an independent company, and that "its successful delivery and strong balance sheet will create significant value for shareholders." The company strongly advised shareholders to take no action.
Shares in Spirit Pub closed up 12% at 84.56 pence Tuesday. Shares in Greene King were trading up 0.8% at 799.46 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Greene King