THE failure of Pubmaster's takeover bid yesterday ends months of uncertainty for the Camerons brewery and its 110 employees.

And it brings to a close a bitter battle for control of Camerons' parent company Wolverhampton & Dudley Breweries (WDB), which had resulted in court action over allegations of passing on confidential information.

Hartlepool pub chain Pubmaster had originally offered 480p a share for WDB, a figure dismissed as "ludicrously low" by WDB's board.

But even its improved offer of 513p a share for WDB's four breweries and 1,500 pubs was rejected by shareholders, although it was still above the market price of 455p.

Analyst David Pope, of Brewin Dolphin, said Pubmaster's failure was a sign that shareholders had confidence in the WDB board.

He said: "It was probably only worth 513p to Pubmaster but, on balance, the market had faith in WDB management to deliver higher value.

"Over the past three years they have had a clear strategy and they have delivered in terms of certain promises."

The takeover battle had been marked by a war of words between the two companies, with WDB launching legal action over claims that confidential information disclosed to Pubmaster had been passed on to rivals.

Pubmaster denied the allegations, although the company had been forced to admit to making a mistake over claims WDB had artificially inflated profits figures.

Its failure to land WDB is a setback but is unlikely to prove a major problem, according to Mr Pope.

He said: "Pubmaster has got a decent industry position and there are a lot of opportunities for them to consolidate. It is a blow but it does not affect their underlying business strategy, because there are other institutions they want to buy."

And he said the takeover battle would probably encourage WDB to tidy up their holdings, including selling off Camerons to Castle Eden.

A Pubmaster spokesman said they will continue to look for opportunities elsewhere, but declined to reveal details of their plans.

He said: "Pubmaster is always buying what it considers to be good properties and making them work. That is how the business has grown."

If Pubmaster's bid had been successful, it was expected to sell all four of WDB's breweries, including Camerons, ending the link between breweries and pubs.

Brendan Boyle, of the Campaign for Real Ale, said the connection was an important feature of the brewing industry.

He said: "The people who brew it know it will be served in good condition by people who are rowing in the same direction."