QVT Financial, the US hedge-fund, has again increased its stake in Punch Taverns.
The investor now owns 23.9 million shares equating to almost 9% (8.97%) of the company. Given Punch’s current share price of 638p, QVT’s stake is worth £152m.
QVT, led by Lars Bader, is opposed to a proposed £11bn merger of Punch with Mitchells & Butlers, put forward by Punch two weeks ago, following the launch of a strategic review at M&B.
Bader said that the only shareholders who would consider the merger were those that were investors in both companies, and that the deal held no logic for shareholders only invested in Punch.
Bader said that the synergies available – thought to be at least £50m – were not enough to justify the transaction.
M&B launched the review following £275m losses through hedges taken out against its aborted £4.5bn property joint venture with R20.
