WOLVERHAMPTON and Dudley Breweries (W&DB) has outlined its reasons for rejecting Pubmaster's bid for the company.
W&DB claimed that Pubmistress, the owner of Pubmaster, was trying to "buy W&DB on the cheap."
Pubmaster's offer of 480p per share valued W&DB at £453.4m.
That offer was also 35p per share lower than the informal offer Pubmistress made for the company on April 20.
W&DB claimed it was rejecting the offer because: "480p per share is well below their earlier offer for the company, does not reflect the substantial improvement in W&DB's performance and does not take into account the underlying quality of the business and the plans announced to drive that business forward."
The board of W&DB, advised by Rothschild, has confirmed its unanimous rejection of the offer and is urging all its shareholders to do the same.
W&DB chairman David Thompson said: "Pubmistress is persisting in its attempt to buy W&DB on the cheap.
"480p per share cannot be viewed as a serious offer for this company and is an attempt to deny shareholders the underlying value of the group."
He added: "We look forward to demonstrating to shareholders over the coming weeks and months the progress being made and the real value of the W&DB group."
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.
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