Spirit yesterday rejected a takeover bid from C&C Group, the maker of Magners and Tennent’s. The offer is thought to be pitched at 115 pence – 5.5 pence higher than the Greene King offer currently favoured by the Spirit board.
It remains to be seen whether, if a firm offer is received from C&C or other bidders, shareholders will require the board of Spirit to think again. Spirit’s recent results could also encourage belief that it is currently being undervalued and has good prospects that will deliver better value to shareholders over time.
The Spirit statement on the approach by C&C reads:
“Following recent press comment, the Board of Spirit confirms that it has received a preliminary approach from C&C Group plc (“C&C”) regarding a possible offer for Spirit (the “Proposal”). The Board of Spirit has reviewed the Proposal and rejected it.
“In accordance with Rule 2.6(a) of the Takeover Code, C&C will have until 5.00pm on 20 November 2014 (or such later time and/or date as may be agreed by the Takeover Panel) to announce either a firm intention to make an offer for Spirit or that it does not intend to make an offer.
“This statement is being made by Spirit without the prior agreement or approval of C&C. There can be no certainty that an offer will be made nor as to the terms on which any offer might be made.”