Punch faces tussle with its investors

HEAVILY indebted pub chain owner Punch Taverns is facing opposition from major shareholders to its plans to raise £375m in a share sale.

Greenlight Capital, the US hedge fund, and QVT Financial are believed to be among those who will vote against the fund raising at the group’s AGM in protest at the potential dilution of their holdings.

Greenlight has aggressively sold down its stake in the pub owner from 13.3 per cent to 8.98 per cent during the fundraising plans. QVT has a 4.1 per cent holding in the company.

A spokesman for Punch said: “In determining the size of the offer we had to balance the views of all our shareholders.”  He added: “We’ve seen broad support from across our register.” Greenlight declined to comment.

Punch Taverns has sold 331 pubs this year to  reduce its £4.31bn debt.