Dutch-based brewer Heineken is planning to acquire UK-based pub firm Punch Taverns.

Heineken is currently in advanced talks, along with investment partner Patron Capital Advisers, regarding a possible cash offer of 174 pence per share of Punch, reported reuters.com.

Heineken is likely to face competition from Emerald Investment Partners, which is in discussions with Punch for a possible cash offer of 185 pence per share.

"Heineken is likely to face competition from Emerald Investment Partners, which is in discussions with Punch."

Currently holding 2.2% of Punch's shares, Emerald's offer is led by founder and former Punch finance director Alan McIntosh.

According to Reuters' report, Heineken's offer is worth approximately £386m, while Emerald's offer is of £410m.

Punch shares increased by around 39% upon receiving the bids.

Punch was quoted by the news agency as stating that both proposals were conditional and bidders have until 11 January to make a firm offer, according to UK takeover rules.

Founded in 1997, Punch currently operates approximately 3,300 pubs.

Upon a successful takeover, Heineken will instantly acquire around 1,900 of Punch's pubs from Patron. Patron will retain more than 1,300 sites of Punch.

Punch recorded an annual profit of £60m in November, reported bbc.com

Image: Heineken brewery. Photo: courtesy of Heineken N.V.