Pub and restaurant group Spirit has rejected a takeover offer from Loch Fyne and Hungry Horse owner Greene King.

Spirit said that the offer “undervalues” the company and does not reflect the “attractive prospects” for its future.

Greene King confirmed that it had approached the board of Spirit in relation to a “potential combination of the two companies” but said that it would comment further “in due course”
In a statement, Spirit said: “The board reviewed the proposal in detail and concluded that it undervalued Spirit and its attractive prospects. Accordingly, the Proposal was rejected on 18 September 2014. As announced on 3 September 2014 in the fourth quarter trading update, Spirit continues to deliver strong performance across both the Managed and Leased estates with market leading like-for-like growth and attractive returns on investment.  Spirit has a successful strategy of delivering growth through investment in its brands, people, infrastructure and estate, including the acquisition of new pubs.  The Board remains fully confident in the ongoing execution of Spirit's strategy as an independent company and that its successful delivery and strong balance sheet will create significant value for shareholders.