Punch readies direct appeal to Allied shareholders

ANALYSTS are expecting Punch Taverns and Bass to approach Allied Domecq shareholders within the next few days following the announcement that it has agreed to sell to Whitbread.

On Tuesday Allied's board agreed Whitbread's bid for £2.36b. If shareholders approve, the deal could be completed within the next three months.

Whitbread is keen to use the acquired sites to expand its Travel Inn budget hotel chain.

Punch Taverns, which runs 1,470 leased pubs, has made no secret of its intention to approach shareholders directly with an offer, expected to be about £2.5b.

Chairman Hugh Osmond said that, if successful, one of the group's objectives would be to increase food sales.

Allied's pub brands include Firkin, Big Steak and Mr Q's. It also owns the franchise rights to Dunkin' Donuts worldwide.