A PROTRACTED takeover battle which would change the face of the North-East brewing industry is expected to come to a head today.

Hartlepool pub chain Pubmaster has launched a hostile takeover bid for Wolverhampton and Dudley Breweries, owners of the Hartlepool brewery Camerons.

On the deadline to improve its offer of £4.80 per share, Pubmaster is expected to up its offer for its rival - possibly to as much as £6 per share.

Shareholders at Wolverhampton and Dudley have resisted the offer so far, with fewer than one in 20 voicing support for the bid so far.

It is understood that during the weekend, Pubmaster's chief executive, John Sands, met the firm's backers, German bank West LB and property firms Rotch and St Modwen, to appeal for extra funding.

One of Wolves' biggest shareholders, fund manager Tweedy Brown, has said it wants a share price of at least £5.15.

Pubmaster, through its subsidiary, Silverhoney, launched its hostile bid for Wolves, which brews Pedigree ale and Harp Irish lager, on June 4.

The current offer, worth £453m, has been dismissed by Wolves' chairman David Thompson as "cheap."

If the takeover is successful, Pubmaster is likely to dispose of Wolves' brewing operations, although the effect on Hartlepool's Cameron's brewery is uncertain.

Earlier this year, Castle Eden brewery based in County Durham launched its own bid to buy Cameron's in a move which would see brewing end at the Castle Eden site and operations move to Hartlepool.

But this bid is subject to Easington District Council granting planning permission for homes to be built on the Castle Eden site.