Punch Taverns mired in bid speculation

Speculation that Punch Taverns was being stalked by - or is in talks with - a private equity house was dismissed today by individuals close to the company.

The market and media have been awash with rumour since the turn of the year that Punch, the country's largest pub company, was being lined up for a bid or was talking to one or more private equity players with a view to selling.

A spokeswoman for Punch said the company never commented on such reports.

Brokers contacted by thepublican.com​ said they had heard of the bid talk but no-one could confirm the story.

In the weeks before Christmas, Punch was on the other side of the rumour fence, with people talking up the possibility of a move by the pubco for Marston's - formerly Wolverhampton & Dudley Breweries.

Punch's shares were trading at 1,238p this morning, down 14p.

City comment from Hamish Champ ​

"The market is a wonderful thing. On the one hand you have pub companies whose shares are at an all-time high. Many believe the economy is set fair for consumers and leisure spending will remain relatively buoyant, while interest rates might peak early this year, but be set to fall consistently thereafter.

"Ah, but then there's the smoking ban. Hmm. Would this be a good or a bad time to launch a bid for the country's largest pub operator?

"When buying or selling a house, there's never a good time, you just have to do it. Similarly, perhaps, making a move for Punch is not so far-fetched. And shareholders might feel the run will come to its end soon.

"There are caveats though. Unravelling Punch Taverns' debt structure might put off all but the hardiest. Then there's the price, with some press reports talking of a 1,550p-plus move being required.

"The company is dismissing talk of a sale, but we would expect them to say that, wouldn't we?"