Britain's Punch Taverns today announced plans to create a £3.7 billion (€4.9 billion) pub giant by merging with rival Mitchell & Butlers (M&B).
The move comes after M&B - owner of the All Bar One and Harvester chains - last week racked up £274 million in losses following a collapsed £5 billion property deal last summer.
The firm's finance director resigned, and the group confirmed potential takeover interest in a turbulent week.
The deal would cement Punch's position as Britain's biggest pub company with more than 10,500 sites.