The Capital Pub Company has rejected an offer from London brewer and pub company Fuller's to buy it for £54m.
Fuller's revealed its approach in an update to the City this morning and said it was "disappointed" by Capital's decision not to engage in discussions so far.
It said it had made a possible all-cash offer of 175p per share for Capital on 22 March but that this was rejected. It then made an increased offer of 200p per share in, valuing Capital at £53.9m, on 26 April.
In a statement, Fuller's said it was "aware of Capital's stated growth strategy" which it said would require further injections of capital. "Fuller's considers that there are considerable risks associated with the successful execution of this strategy that could dilute the overall quality and attractiveness of Capital's estate and which could have a negative impact on valuation over time," it said.
Fuller's said it thought a deal would be "in the interest of Capital shareholders" to engage with Fuller's in order to "deliver an attractive cash offer in a timely manner".
Capital's full-year financial results for the past 12 months are due next week. It aims to build an estate of around 50 pubs.
By Neil Gerrard
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