Bid speculation mounts at Eldridge Pope
Eldridge Pope, the West Country pub operator, is the subject of intense bid speculation with both Greene King and Noble House named as possible buyers of the business.
It is believed that Greene King, the Suffolk brewer behind Abbot Ale and Old Speckled Hen, is preparing a £65m bid. The company is said to be carrying out preliminary due diligence on Eldridge Pope's 185-strong pub estate with a view to making an offer before Christmas.
However, no direct approaches have been made yet according to a source close to Eldridge Pope. "If Greene King is carrying out due diligence it is without our knowledge. No formal or informal discussions have taken place. They may well be checking out the estate but that is not unusual - we quite often visit the competition," a source said.
But it is believed the Pope family, headed by Christopher Pope, the chairman, has been courted informally by several suitors including Greene King.
The family, which still holds 25 per cent of the shares, is thought to be open to offers and a takeover at the right price.
It was rumoured that Noble House, the leisure operator headed up by entrepreneur Robert Breare was preparing a bid. Backed by Bott & Co, the venture capitalist, Breare is understood to have made an informal approach to the company, thought to be through its advisers, Dresdner Kleinwort Wasserstein.
Breare is sitting on a £250m cash-pile and wants to build his estate to 300 as quickly as possible. But it is thought he will not counter-bid against Greene King and is unlikely to make an offer before the New Year.
Greene King recently completed the £102.6m takeover of Old English Inns. It is thought to be unwilling to offer any more than £65m, or about £115m including debt, but it is thought this would be below Pope family expectations.
Although the potential Greene King offer is only just above the current share price of 251.5p, much of the rise from 180p a year ago is because of the given bid speculation.
Greene King's share price has risen from 477p to 672p in the past year and it is believed it could fund an offer nearer to the Pope family's expectations, by offering a mix of cash and shares.
