BUZZ-Greene King: top shareholder Lindsell Train criticises Spirit deal

** One of Greene King (Frankfurt: A0F66P - news) 's largest shareholders has blamed its acquisition of rival Spirit in 2015 for compounding its current woes

** Shares (Berlin: DI6.BE - news) in the pub company are at a five-year low, slumping 15 pct in early September after warning of weak demand and rising costs

** Greene King said in December 2015 the £774 mln takeover of Spirit would lead to cost significant synergies for the combined group Link: http://reut.rs/2yVtGUS

** But in a letter to investors dated October 9, Lindsell Train's Nick Train, whose firm is the seventh-largest shareholder in Greene King with 2.3 pct, said the Spirit deal had exacerbated tough trading conditions for UK pubs generally

** The deal "has lowered the quality of the combined group's estate, meaning that tougher conditions have had a worse effect than they would have done on the pre-Spirit Greene King," Train said

** "It is a shame and frustrating to me, because Greene King's capital allocation and business development had been exemplary for decades prior to this"

** Train said he has been selling down his holding, and has not yet decided whether to rebuild it on weakness