SPIRIT Pub Company is poised to accept an improved takeover proposal worth £725 million from rival Greene King.

Spirit, which has more than 1,200 pubs following its demerger from Punch Taverns in 2011, is holding talks in a bid to finalise the deal before an extended Takeover Panel deadline of October 30. Greene King , which dates back to 1799 and has around 1,900 outlets, approached its rival about a combination last month but its offer of 100p a share or £661 million was rejected by Spirit as undervaluing the business.