Greene King's takeover offer for Spirit is rejected

Greene King's takeover offer for pub and restaurant owner Spirit has been rejected.

Spirit said the offer, which values the firm at 100p per share, "undervalues" the company and its "attractive prospects".

Greene King, which owns the Loch Fyne and Hungry Horse chains, said it would announce a firm offer or withdraw by 21 October.

"A further announcement will be made in due course," it said in a statement.

Suffolk-based Greene King, which runs 1,900 pubs, restaurants and hotels across the UK, declined to say how much its offer was worth.

Spirit, which was split off from Punch Taverns in 2011, runs pubs such as Chef & Brewer, Fayre & Square and Flaming Grill.

Spirit's shares surged almost 19% following the announcement.