Whitbread aims to knock out Punch
Updated: 19:00 EST, 28 June 1999
Whitbread is expected to attempt to land a knockout blow on upstart Punch Taverns by raising its offer for Allied Domecq's 3,600 pubs to around £2.6bn.
Punch, run by entrepreneur Hugh Osmond, trumped Whitbread's initial £2.5bn share offer with a £2.7bn cash counter. Whitbread's bid could still be preferred as its shares could rise over time, but it has come under increasing pressure to offer cash as well. Shareholders in both companies vote on the deal on Friday.
Whitbread was fighting a rearguard action yesterday, claiming Punch 'seriously understated' the value of Whitbread's offer. It insists there will be £100m of cost saving benefits, £40m more than claimed by Punch.
But an analyst said: 'It does not look as if Whitbread's bid is as smugly well positioned as it thought a few days ago.'
Punch said: 'We are playing to win. We have serious financial firepower behind us.' Allied rose 10p to 607p on prospects of a higher offer. Whitbread eased 9p to 1029p.