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LONDON, Feb 1 (Reuters) - Emerald Investment Partners saidit has decided not to make a takeover offer for Punch Taverns, leaving Heineken unrivaled in its bid to buyand break up the UK pub company.
Shares of Punch, the country's second-biggest operator withmore than 3,000 pubs, fell 6.3 percent on Wednesday to 176.25pence, on dashed expectations of a raised offer.
Dutch brewer Heineken and investment partner Patron Capitalstruck a deal in December to buy Punch for 180 pence per share,or 403 million pounds ($509.27 million), and break up itsestate.
Emerald, the investment firm of Punch founder Alan McIntosh,said at the time that it had proposed a 185 pence-per-shareoffer for Punch, but the offer was conditional on financing anddue diligence. Punch's management, board of directors and topthree shareholders all endorsed the Heineken bid.
Emerald said on Wednesday that it does not plan to make anoffer for Punch.
Punch said its shareholders will meet on Feb. 10 to vote onthe deal with Heineken and Patron, and that it expects the dealto close in the first half of this year.($1 = 0.7913 pounds) (Reporting by Martinne Geller, editing by Louise Heavens)
