Fri 24th Oct 2014 - C&C Group provides strategy behind Spirit bid C&C Group provides strategy behind Spirit bid: Magners producer C&C Group has this morning offered the reasons why it has launched a bid to buy Spirit Pub Company. Last night, Spirit reported that it had turned down an approach from C&C Group, believed to involve an offer of 115p a share, with a third of the price in cash. At the moment, a Greene King offer of 109.5p a share, including 8p in cash, is the preferred offer of the Spirit board. However, the C&C approach raises the prospect of competition to buy the company, which may eventually drive its price higher. On the face of it, Spirit shareholders benefit from the synergies that would arise from a merger with Greene King where they would own 29% of the merged company. C&C Group, on the other had, currently does not operate any pubs. This morning C&C Group stated: “The Board of C&C notes the recent Spirit announcement regarding a possible offer for Spirit and confirms that it has made a preliminary approach to the Board of Spirit in relation to a possible offer for Spirit. There is no certainty that a firm offer will be made nor as to the terms on which any offer might be made. An acquisition of Spirit, one of the highest quality pub estates in the UK, would transform C&C and enhance long-term shareholder value through: revenue and cost synergy benefits; a broader range of strategic and operating options for a combined business; a combination of C&C’s highly cash generative business with Spirit which C&C believes will provide capital to optimise performance and drive shareholder value; a strengthened route to market for C&C’s long alcohol drinks brands in the on-trade across England and Wales matching the recognition it enjoys in its other core markets; a compelling consumer platform for C&C’s brands in some of the best locations throughout England & Wales, in particular London; and, access to improved procurement terms for a combined business.” The drinks company added: “C&C’s management team is experienced in running a vertically integrated pub and long alcohol drinks business and strongly believe that a combination of C&C’s brands with Spirit’s high quality, well-located pub estate is the most effective way to optimise shareholder returns in a competitive UK market.” In accordance with Rule 2.6(a) of the Code, C&C is required, by not later than 5.00 pm on 20 November 2014, to either announce a firm intention to make an offer for Spirit in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer.