Body blow for M&B as Punch walks away from merger

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The chill winds blowing through the pubs sector, meanwhile, has seen Enterprise Inns, another of the country's major landlords, postpone a £750 million refinancing and launch a rant at the Chancellor's "ill-conceived" rise in alcohol duty.

Before a put-up or shut-up deadline today, Punch Taverns, headed by former City banker Giles Thorley, said it had withdrawn its merger offer to M&B lodged two months ago.

It consisted of a 50-50 merger plus £175 million to M&B shareholders.

Since then both companies' share prices have sunk, with M&B's shares plummeting faster.

In a statement today, Punch said that, after preliminary negotiations and due diligence, it had concluded "that the terms proposed to M&B are no longer in the best interests of Punch shareholders and therefore Punch is withdrawing its offer".

Since that 4 February offer, Punch's shares have dived 22%. But M&B's had fallen by nearly 30% at last night's close, valuing M&B's equity lower than Punch's market capitalisation of £1.38 billion. M&B shares fell a further 4% on today's news, off 13¾p to 315¾p.

Several private-equity firms have looked at M&B, which has been hit by a botched property refinancing.

But sources indicate the way has now been cleared for a joint offer from CVC - best known for owning Formula 1 and the AA and Saga group - and Blackstone, the US group whose UK interests include the Café Rouge group and CenterParcs.

Meanwhile, Enterprise Inns today said it is abandoning a £750 million refinancing due to "the current volatile and uncertain conditions in the debt markets." The news came as the firm announced trading had not worsened in recent weeks despite the ongoing effects of the smoking ban, shrinking disposal incomes and soaring food, fuel and utility bills.

Chief executive Ted Tuppen said: "The Government's punitive and illconceived increases in duty on alcohol will impact all responsible pub-goers and do nothing to address the problems of anti-social behaviour and binge-drinking."