GREENE KING PLC LONDON (Reuters) - Ale-maker Greene King (>> Greene King plc) is working on plans to make an improved offer of 700 million pounds ($1.1 billion) for rival Spirit Pub Co (>> Spirit Pub Co PLC) ahead of a Tuesday deadline, the Sunday Times newspaper reported.
Pub chain Spirit last month rejected a 661 million pound takeover approach from Greene King, which runs breweries as well as pubs.
Greene King, based in Suffolk in the east of England, is hoping to secure an agreed bid of 110 pence a share early this week, the Sunday Times reported, without citing sources.
The company, whose 1,900-strong estate includes Hungry Horse, Old English Inns and Loch Fyne Restaurants, has until 1600 GMT on Oct. 21 to announce a firm intention to make an offer for Spirit or walk away under British takeover rules.
Under Chief Executive Rooney Anand, Greene King is shifting its focus to its own-managed retail business, comprising restaurants, hotels and pubs, as it competes for a bigger slice of the dining market. To further that aim it is reducing its tenanted and leased estate.
Spirit, which was spun off from Punch Taverns (>> Punch Taverns plc) in 2011 and runs chains such as Chef & Brewer, Fayre & Square and Flaming Grill, is split into 450 leased pubs and more than 750 managed pubs, with the latter accounting for nearly 90 percent of the group's revenue.
(1 US dollar = 0.6214 British pound)
(Reporting by Clare Hutchison; additional reporting by Neil Maidment; editing by Keiron Henderson)
