Shares in Spirit Pub Co (SPRT) soared nearly 20 per cent following rival pub group Greene King's (GNK) suggestion that the two groups merge. The deal could be worth up to £700m, with various media reports suggesting Greene King offered Spirit's board 110p a share - representing a healthy 46 per cent premium to Monday's closing share price of 75.5p.
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Neither company has confirmed the approach, but it's thought Spirit already rejected an offer worth 100p a share. If it happens, the tie-up would create the UK's largest managed pub operator. Spirit runs roughly 1,200 pubs and restuarants, while Greene King has a 1,900-strong estate.
