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.
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 3 School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
- 5 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Amber Peat: Body found in search for missing 13-year-old who left house after argument with her parents
School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
Isis executes three gay men by dangling them from top of 100ft building and letting go
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...