Enterprise has confirmed the 150 pence per share bid but Century has advised its shareholders to take no action while it considers the hostile move.

Bid 'accepted'

However, Enterprise already owns 6.6% of Century shares and says it has acceptances to purchase a further 44.4% from institutional shareholders which would give it 51% control to seal the takeover.

Enterprise said that the offer was final and would not be increased unless there was a rival bid.

The bid offers 0.3942 new Enterprise Inns shares for each Century Inns share.

Shares leap

Century's share price leapt in opening trade on Monday, up 23% to 141.5p after closing at 115p on Friday.

Century has 504 pubs, mainly in the north east of England and the Midlands.

Enterprise Inns has grown rapidly since its formation in 1991, expanding to nearly 1,800 outlets. Other pub companies it has taken over include Gibbs Mew and Mayfair Taverns.

"The board believes that the acquisition will enhance Enterprise Inns' adjusted earnings per share in the current financial year and expects the return on the investment to exceed Enterprise Inns' cost of capital," Enterprise said.