Greene King to raise Spirit bid
Shareholders in Green King, maker of Old Speckled Hen beer, are worried about overpaying for SpiritShareholders in Green King, maker of Old Speckled Hen beer, are worried about overpaying for Spirit (Lynne Sutherland)
GREENE KING, the pub operator and maker of Old Speckled Hen beer, is weighing an improved £700m offer for rival Spirit, owner of Chef & Brewer.
Rooney Anand, chief executive of Greene King, had an all-share offer of 100p rejected by Spirit this month. It valued Spirit at £661m.
Senior City sources said he was likely to return with a higher offer. Analysts have suggested Greene King would need to bid at least 110p per share to succeed. A deal at that price would value his target at £727m. The company has until October 21 to put up or shut up.
Shareholders are nervous of Greene King overpaying. “We are supportive up to about 110p a share, but more than that and it doesn’t make sense,” said one leading investor. “Spirit shareholders need to know that too,” the investor said.