Punch to split in two

Punch Taverns, the biggest pubs group in Britain, is to split itself in two by the end of the summer and sell thousands of boozers. The review, which started in October, has concluded that the way forward is to separate the Spirit managed pubs business from the struggling leased operation - Punch.This will create two independent public companies and allow the investment and development needed to speed up its operational turnaround and drive growth. Bosses say the leased business needs to be "repositioned" to maximise the long term value by almost halving the estate to a core of around 3,000 "high quality" pubs.Punch desperately needs to reduce its £3bn debt pile, acquired partly through the £2.7bn purchase of rival Spirit in 2005."A demerger will provide the platform to enable both businesses to focus on the very different strategies required to deliver shareholder value and will provide choice and liquidity for investors," chief executive Ian Dyson said."Spirit will be positioned to deliver market leading sales and profit growth and to expand with the aim of becoming the UK's leading managed pub operator."