Pubmaster fails to buy W&DB

Pubmaster has failed in its attempt to buy Wolverhampton & Dudley Breweries (W&DB).

W&DB shareholders ended the year-long battle for the brewer, which owns brands including Marston's and Banks's as well as the Pitcher & Piano chain of bars, by rejecting Pubmaster's cash offer, at lunchtime today (Monday).

Over the weekend shareholders' support for Pubmaster's bid had risen from 20 per cent on Friday to more than 40 per cent early today. But in the end, only 47 per cent voted in favour of the 513p per share offer - just short of the necessary 50 per cent.

A spokesman for Pubmaster said: "We are disappointed but Pubmaster remains a leading operator of UK pubs. We are looking for opportunities elsewhere to grow the business."

The failure of the hostile takeover bid was welcomed by the Campaign for Real Ale (CAMRA), which has been fighting to keep W&DB independent.

Mike Benner, head of campaigns and communications at CAMRA, said: "This is great news for beer drinkers in the Midlands and for the real ale industry as a whole."

However, he added that the directors of W&DB should take action to protect the company from further hostile bids.

CAMRA has called on the Government to investigate the beer and pub industry with a view to developing a strategy to promote more competition and choice.

Mr Benner said: "We need the Government to step in and take action to prevent further takeovers and mergers from eroding this important British industry."