By Martinne Geller and Anjuli Davies
LONDON May 23 British brewer Greene King
said on Friday it had pulled out of takeover talks with
pub operator Orchid Group, which is expected to fetch about 250
million pounds ($421.04 million).
"We have decided to withdraw from the Orchid sale process as
the transaction does not meet our strict acquisition criteria,"
Greene King Chief Executive Rooney Anand said in a statement.
Mitchells & Butlers and Spirit Pub Co are
both still in the running to buy Orchid which operates around
240 pubs, said sources familiar with the process.
Starwood Capital and Colony Capital may also still be in the
running, according to one of the sources, who added that final
bids were due on Friday.
Orchid is owned by a trust linked to Deutsche Bank
. One of the sources said the company had earnings
before interest, tax, depreciation and amortisation (EBITDA) of
more than 30 million pounds and was expected to fetch about 250
million pounds in a sale.
Spokespeople for Orchid, Mitchells & Butlers, Spirit, Colony
and Deutsche Bank declined to comment. Starwood was not
($1 = 0.5938 British Pounds)
(Reporting by Martinne Geller; Editing by David Evans, Greg