Shares in Enterprise Inns have jumped almost 30% after the FTSE 100 leased pub company announced that it was eligible to convert to a tax-efficient Real Estate Investment Trust (Reit) – if it underwent an internal restructuring. In a statement to the stock market late this afternoon the group, led by chief executive Ted Tuppen, said it would undertake further analysis of the move before deciding whether to recommend it to shareholders. The Enterprise news set other pub stocks soaring, with shares in Greene King, Marston's and Punch Taverns all rising sharply. The company and its legal adviser CMS Cameron McKenna have been in protracted discussions with HM Revenues & Customs (HMRC) in an effort to convince tax authorities Enterprise should be allowed to make the switch. The statement said that a response from HMRC had been received that confirmed that: “Enterprise is eligible to convert to Reit status if an internal restructuring of the group is undertaken. “Accordingly, in conjunction with its tax, legal and financial advisers, Enterprise is progressing the detailed analysis required to decide whether the board will recommend to shareholders at an EGM that Enterprise Inns should elect into the Reit regime.” It went on to say that it expected its analytical work to take several months to complete and a further announcement would be made in due course. Under the current rules, a Reit must derive 75% of its revenues from rent and must distribute the lion’s share of its profits to shareholders. Analysts believe conversion to a Reit could bolster the Enterprise share price by up to 50%. The shares rose 29.2% to 512p.