Punch could upset Allied pubs deal
Wednesday 05 May 1999
The group, which runs more than 2,300 pubs, has been trying to open discussions with Allied for months and claims it could offer a higher price.
Hugh Osmond, chairman of Punch, said: "All we are saying is, `Listen guys we might be able to give you more money for this business.' They ought to welcome us with open arms. It is bizarre." Mr Osmond said Punch Taverns would also been interested in Allied's Dunkin' Donunts and Baskin Roberts food businesses.
Allied said that if and when Whitbread makes a formal offer, its period of exclusivity would lapse allowing others to enter the fray. It also claimed that the all-share structure of the deal with Whitbread meant Allied's institutional shareholders would escape a heavy capital gains tax liability.
The stock market responded warmly to the deal, marking Allied Domecq shares 12 per cent higher at 543p with Whitbread up almost 3 per cent at 1086p.
Analysts said Whitbread, which reports full-year results today, would be able to secure cost savings of around pounds 40m a year from the deal. There would also be operational efficiencies with a reshuffle of the formats and increased investment in the neglected Allied estate. Whitbread's managed pubs enjoy sales some 50 per cent higher than Allied's portfolio, leaving plenty of room for improvement. Whitbread is also likely to look at the Allied pubs' onerous beer supply deal with Carlsberg-Tetley.
The sale would leave Allied Domecq as essentially a spirits business with brands like Ballantines scotch and Beefeater gin. It could make the group more attractive to a merger partner.
- 1 Porn block in India: hundreds of sexual websites banned, internet outraged
- 3 Gamers confess the worst things they've done in The Sims
- 4 Sex with robots will be ‘the norm’ in 50 years
- 5 Barack Obama turns 54: The US President's best put downs to celebrate his birthday
Jackie Chan climbs to second place in Forbes' Highest Paid Actors list after magazine includes actors working outside US movie industry
Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
Gwen Stefani and Gavin Rossdale divorce: One of music industry’s most enduring couples announce split after 12 years of marriage
Giant Minion terrorises drivers in Ireland as 40ft inflatable blocks traffic on Dublin road
Dutch King Willem-Alexander declares the end of the welfare state
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
iJobs Money & Business
£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...
£35000 - £37000 per annum + benefits: Ashdown Group: Contracts Executive - Cit...
£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...
£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...