Shares in Punch Taverns climbed significantly yesterday amid mounting speculation that private equity group CVC Capital Partners may launch a bid for the business.
The shares rose 18.5p to 276p. The price is still some 70% below its value of last year, although has rallied more than 25% from its low of 200p last month.
CVC is one of several buyout firms interested in the business, which is now capitalised at just £700m, according to reports at the weekend.
The group, which is a former investor in Unique Pub Company, is thought to have an appetite for freehold-backed pub businesses.
It held talks with the management team at Punch, which owns 8,400 leased and managed pubs, earlier this year about a joint takeover of Mitchells & Butlers (M&B) before Punch’s offer to merge with M&B was rejected.
It has also held separate talks with M&B about acquiring a 29.9% stake in the managed house operator.
