C&C set to make rival bid for Spirit Pub Company

C&C, which makes Magners, Bulmers and Gaymers ciders as well as Tennent's lager, said it had made an initial approach to Spirit and was in talks about a possible offer.

Spirit has already said it is minded to recommend a revised £723m bid from brewing and pub group Greene King, which makes Old Speckled Hen ale.

C&C said in a statement: "The board of C&C notes the recent Spirit announcement regarding a possible offer for Spirit and confirms that it has made a preliminary approach to the board of Spirit in relation to a possible offer.

"There is no certainty that a firm offer will be made nor as to the terms on which any offer might be made."

C&C said a deal to buy Spirit, which it described as one of the highest quality pub estates in the UK, would transform the Irish company and enhance long-term shareholder value by improving revenue and cost savings, giving the combined business more strategic and operating options, and other benefits.

It said: "C&C’s management team is experienced in running a vertically integrated pub and long alcohol drinks business and strongly believes a combination of C&C’s brands with Spirit’s high quality, well-located pub estate is the most effective way to optimise shareholder returns in a competitive UK market."

C&C is required, by not later than 17:00 on 20 November 2014, to either announce a firm intention to make an offer for Spirit or announce that it does not intend to make an offer.