Keep a lid on it

15 December 2016 By Carol Ryan

The Dutch brewer and its partner have topped up a cash offer for Punch Taverns to 403 mln pounds. Investors are thirsty for more, possibly from a rival suitor. Heineken could keep up a bit longer in a bidding war before the financial return left any strategic merits tipsy.

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Heineken and investment partner Patron Capital Advisers have agreed to a 403 million pound offer for UK pub group Punch Taverns, the company said on Dec. 15. The Dutch brewer said it would contribute 305 million pounds of the total to acquire approximately 1,900 pubs across the United Kingdom.

The combined bid for Punch is a cash offer of 180 pence per share, an increase from a previous proposal of 174 pence per share.

Rival bidder Emerald Investment Partners has proposed 185 pence a share, conditional on financing.

Punch Taverns' shares were up 7.9 percent to 191 pence by close of London trading on Dec. 15.

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