Magners Bid For Pub Firm Spirit Turns Sour

A takeover bid by the cider firm behind the Magners brand for Spirit Pub Co, has been rejected.

Spirit, which has 1,200 UK pubs under the Chef & Brewer and Taylor Walker names, did not disclose the details of the approach but said Ireland (Other OTC: IRLD - news) -based C&C Group (Other OTC: CCGGY - news) had until 20 November to submit a formal offer.

C&C is the second company vying for control of Spirit, with the UK's largest pub retailer and brewer Greene King (LSE: GNK.L - news) already in talks on a cash-and-stock deal valued at £723m.

C&C, which also produces cider under the Bulmers name, said it hoped to use Spirit's network of pubs to improve its access to English drinkers but that there was no certainty it would make a firm offer.

It added that the tie-up would allow it to "match the recognition it enjoys in its other core markets", Scotland and Ireland.

Its shares fell 7% in early trading following Thursday's announcement, with The Times newspaper reporting that C&C was offering 115p-per-share in cash and stock, with at least a third in cash.

That would top Greene King's current offer of 109.5p-per-share.

Greene King, which has 2,000 pubs, restaurants and hotels, said last month it expected to make a further statement on its interest in Spirit.