Spirit Pub Rejects $1.1 Billion Greene King Bid Approach

Spirit Pub Co., the owner of more than 1,200 U.K. outlets including Chef & Brewer and Wacky Warehouse, said it rejected a 661 million-pound ($1.1 billion) all-share takeover approach from competitor Greene King Plc.

The proposal, worth 100 pence a share, “undervalued Spirit and its attractive prospects,” the Staffordshire, England-based company said today in a statement.

Earlier, Greene King, the owner of the U.K.’s Hungry Horse pubs and Loch Fyne restaurants, said it made a proposal to Spirit relating to “a potential combination.” Under British takeover rules, Greene King has until 5 p.m. on Oct. 21 to either announce a firm intention to make an offer or walk away.

Spirit Pub shares rose 18 percent to 88.75 pence at the close of trading in London, valuing the company at 586 million pounds. Greene King was almost unchanged at 794 pence, leaving its market capitalization at 1.74 billion pounds.