Huge hat tip to Dominic Walsh over the at The Times for his scoop on Mitchells & Butlers's "exclusive" discussions to buy the Orchid pub group for about £250m.
M&B have just had to issue a statement confirming Dom's tale. Here is the link: http://www.investegate.co.uk/mitchells---38--butlers--mab-/rns/response-to-press-speculation-on-orchid-estates/201405290842053277I/.
Loyal Betaville readers may recall that I revealed back in late April that M&B was gearing up to purchase Orchid for between £250m and £300m. Hear is a link to that piece: http://betaville123.blogspot.co.uk/2014/04/fancy-pint-part-2.html
That story came after I heard that Greene King and M&B had held loose discussions about combining to create a £4 billion pub company although clearly, so far, nothing has ever come of this "old chestnut" of a deal rumour.
However, some of my sources are starting to speculate that news about M&B's imminent purchase of Orchid might tempt Greene King, which is run by the ambitious Rooney Anand, into rekindling merger talks prior to the completion of M&B's Orchid deal (which many analysts tell me they like because an acquisition of Orchid for about £250m is still likely to be highly accretive to M&B's earnings).
It's a bit early for a pint (even by my standards) so I am heading down my local coffee shop for cappuccino instead...
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