WIC selling stakes in two brewers

WHITBREAD Investment Company, the brewing company's investment arm, has put a public 'for sale' sign on its larger holdings in regional brewers.

It owns 31 per cent of Marston and 21 per cent of Boddington, which is now solely a pub retailer. It also holds small stakes in a string of other regional brewers.

Robin Farrington, WIC chairman, said yesterday that to comply with the Government's Beer Orders it would reduce its main holdings to 15 per cent by 1 November.

If it does not dilute its stakes, the size of both Whitbread's - and the regional brewers' - public house estates will be adversely affected.

Mr Farrington said that WIC had brokered discussions between Marston and interested buyers, but talks had been unsucessful.

'In the case of Marstons, discussions have been taking place but no agreement has yet been reached and no firm proposals put forward,' Mr Farrington said.

It has been known for some time that WIC is obliged to start a disposal programme, but yesterday's statement clearly sets out options.

It agreed to sell most of its 43 per cent stake in the Oxfordshire brewer Morland to Greene King in May, setting off a hostile takeover bid for Morland.

However, speculation that a sale will prompt Morland-like bids for either Marston or Boddington was dampened yesterday.

Shares in both companies fell as the belief that WIC will place its troublesome stakes with a range of institutions gained credence in the City.

But the Boddington position will be watched closely because it has a 20 per cent stake in another regional brewer, Devenish.

Boddington is free to bid again after its first attempt failed in June last year.