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UK: Four bids were submitted on Friday, July 2, in the 450 million pound ($823 million) auction of the Laurel Pub Company, all from rival pubs groups, in a sale set to be completed by end-July, sources close to the matter said. The four bids came from Wolverhampton and Dudley Breweries Plc, Greene King Plc, Punch Taverns Plc and private equity owned managed pubs group Spirit, for the 432 Laurel community managed pubs on offer, they added, according to Reuters.

Laurel, owned by Deutsche Bank's private equity arm, decided earlier this year to sell its community pubs, with brands like Wayside, to focus on its 177 town centre outlets such as Hog's Head and Casa after the group failed in its attempt to buy Scottish and Newcastle's pubs late last year.

Laurel, which was formed in 2001 for the buy-out of the old Whitbread pub estate, had set a timetable for final bids to be submitted by 1700 local time (1600 GMT) Friday. It hoped to complete the sale by the end of July in an auction being handled by investment bank Rothschild.

For regional brewing and pub groups Wolves & Dudley and Greene King a purchase of the Laurel pubs at the expected price would be the biggest acquisition either have done. It would probably have to be funded by new equity as well as debt. Wolves & Dudley, since narrowly defeating a hostile bid by Pubmaster in 2001, has looked to buy pubs and expand its base from the West Midlands of England. Last month, it bought the 63-strong Wizard Inns in southern England for 90 million pounds.

Some sources put Wolves & Dudley as the front-runner in the auction, but others said it was too early to tip a favourite.

Greene King with nearly 1,700 pubs has been acquiring pubs over the last eight years, such as the Magic Pub Company, Morland, Old English Inns and Morrells, and is eager to spread its pub empire from its heartland of southern and eastern England.

Fast-growing leased pubs operator Punch, which swallowed Pubmaster last year to give it over 7,000 pubs, sees potential in transferring the Laurel managed pubs to leases and help it close the gap with pub industry leader Enterprise Inns Plc with its 9,000 pubs.


07 July, 2004