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Punch ends talks with M&B

18th April 2008, 12:16pm

Punch Taverns has today announced that it has terminated all talks of a takeover with Mitchells & Butlers (M&B).

The saga has been ongoing for months and this week the plans came to a head.

In March this year, M&B proposed a takeover resulting in Punch Taverns withdrawing unless other companies contributed to the bid.

It has been widely publicised this week that M&B would try and raise some money through equity investors and in a statement the company said on Tuesday: "The Board believes that significant value through enhanced sales and profitability can be created by integrating Punch's managed pub business into Mitchells & Butlers operational and brand structure."

They added: "The Board has now initiated an approach to Punch to explore whether terms for such a mutually beneficial transaction can be agreed."

Punch Taverns has since decided this would not be in the interest of their shareholders.

Last year a property deal fell through for M&B, resulting in a loss of £274m making the company vulnerable to a takeover deal itself, which Punch Taverns attempted.

The offer failed and Punch Taverns has since been in discussion about a possible second bid using private equity.

The company today said it still has the right to proceed with this.

Related Articles:

08 May 2009 - Shepherd Neame acquires 13 Punch pubs
27 Mar 2009 - Punch Taverns sells six of its pubs to Fuller's
26 Mar 2009 - Punch Taverns sells six of its pubs to Fuller's

Words Clare Riley 0 comments

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