PUBMASTER, which last month launched its £453.4m hostile bid for regional brewer Wolverhampton & Dudley (W&DB), has received support from just 3.7 per cent of Wolves' shareholders at the close of the first deadline.

The initial deadline for the offer was 3pm on Thursday, by which time valid acceptances in respect of just 3.5 million ordinary W&DB shares had been received.

The offer has now been extended to 3pm on Thursday, July 19.

Pubmaster launched its eleventh hour 480p per share bid for Wolves at the beginning of June, through its holding company, Pubmistress.

That offer was 35p per share less than its original bid of 515p per share, made on April 20.

W&DB has continually rejected the bid as undervaluing the shares of the company.

When Pubmaster launched the bid, Wolves chairman David Thompson, said: "This is an attempt by Pubmaster to acquire W&DB on the cheap, at the expense of our shareholders."

Mr Thompson said yesterday: "Shareholders are clearly waiting to see if Pubmaster can come up with a serious offer that properly reflects the re-rating of the sector over the last year and the improved trading performance of W&DB.

"We urge shareholders to reject this attempt to buy their company on the cheap."

If Pubmistress wants to increase its offer for W&DB, it must do so before a deadline of July 30.

After a deadline of July 23, W&DB is not able to put out any more information in defence of the company.

The Pubmistress offer was made by WestLB Panmure on behalf of Silverhoney, a subsidiary formed by Pubmistress for the purpose of the offer.

If Pubmaster succeeds in enticing enough shareholders to take up its offer, it is believed the group, which owns 2,000 pubs but no breweries, will dispose of W&DB's remaining brewing operations.

W&DB has already agreed to sell its Camerons Lion brewery in Hartlepool to Castle Eden Brewery.

The plan is to move operations from Castle Eden to the Lion Brewery.

However, that deal is dependent on Castle Eden being granted permission by Easington District Council for a housing development on its former site.

If planning permission is refused, the deal for Castle Eden to buy Camerons could be called off, leaving the future of both breweries in the balance.