UNION leaders representing hundreds of East Lancashire brewery workers today voiced concerns after Whitbread confirmed it could be about to sell its Samlesbury brewery.

Whitbread issued a statement confirming talks over a multi-billion pound deal that would see Whitbread take over 3,500 pubs and restaurants from Allien Domecq.

If the deal went ahead, Whitbread would be forced to sell off its brewing arm which employs more than 500 people at Samlesbury and produces famous brands including Heineken, Stella Artois and Boddingtons.

"Obviously any speculation about a sell off of the brewing side is worrying to members," said GMB union convener Neil Holden.

"We've already been through a lot here in recent years and we were led to believe that those changes were necessary to take us into the century in a strong position under the Whitbread banner but now that may not happen. "Everyone has been asking me today what has been going on but we don't really know. We're hoping to speak to management here today to find out the situation is."

The North West's brewing industry has seen major changes in recent years with job losses and brewery closures including the Greenalls site at Warrington.

In the statement the two drinks groups said they were holding discussions "which may or may not lead to Whitbread acquiring Allied Domecq's UK retail business".

The joint statement followed newspaper reports that Whitbread was poised to spend up to £2.75 billion buying 3,500 pubs and restaurants from Allied Domecq.

A statement said the talks centred on a potential deal which would see Allied Domecq shareholders receive shares in Whitbread in exchange for the retail business. The deal would see Whitbread take on 1,300 tenanted pubs and over 2,000 managed pubs and restaurants.

Included in the sale would be Allied's 370 Big Steak pub-restaurants which Whitbread would add to its 380 Brewers Fayre and 250 Beefeater pub-restaurants.

Government rules prevent any one company owning more than around 5,000 pubs and owning a brewing operation as well.

The Whitbread Beer Company brewing side of the business could either be floated separately on the stock market, sold to a management buyout team or sold to another brewery company.

Shares in Whitbread raced ahead by 39p to 1095p on the Stock Market in early trading.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.