The chairman of a pub chain has denied speculation the company could launch a takeover bid for Oxfordshire brewer Brakspear.

Michael Davies, chairman of JT Davies, which owns about 60 pubs, confirmed the company has increased its stake in the Henley-based firm to almost 28 per cent. A 30 per cent holding would mean the firm would be forced to mount a full bid for Brakspear under Stock Exchange rules.

But Mr Davies said: "I have no intention of taking over the company either now or in the future."

He said the shareholding had been bought from the Chalcraft family -- Michael Chalcraft was Brakspear's chairman for many years.

Brakspear chief executive Jim Burrows said he did not believe a takeover was likely.

He said: "It has been a shareholder for a long time. We are delighted it has shown such faith in the company."

In a recent annual report, Brakspear chairman Mike Foster said sales were declining and smaller, independent brewers were being put under increasing pressure by bigger operations. A range of options are being discussed and fears are rising that 220 years of brewing at the site could be contracted out to another company.

Brakspear recently revealed it is reviewing its brewing operation after the Chancellor cut in half the duty paid by small and micro-brewers. Brakspear is too big to qualify for the Budget cut.