LAKE district brewer and pubs group Jennings Brothers is in takeover talks with Wolverhampton and Dudley Breweries, it was confirmed last night.

The Midlands brewery said it was discussing a 430p-a-share offer for Jennings, which runs 128 pubs across the North, with about a third of those in the North-East and Yorkshire.

Jennings brews a range of beers, including its flagship Cumberland Ale, from its home brewery in Cockermouth, Cumbria.

W&DB, which has made a string of acquisitions in recent years, said the deal would represent ''an excellent geographic fit'' with its existing business.

It already owns the Pitcher and Piano, Bostin' Locals and Service That Suits Me pub chains. It also brews Banks's, Hanson's and Mansfield beers in Wolverhampton, and Marston's Pedigree ale in Burton upon Trent, Staffordshire.

W&DB said the potential deal, which is subject to an examination of Jennings' books and approval by shareholders, valued the Cumbrian brewer at £46m.

W&DB closed Mansfield brewery, in Nottinghamshire, following its acquisition of that business.

A spokesman said it was too early to talk about potential job losses.