Wolverhampton & Dudley, the UK's biggest regional brewery, has reported strong sales growth at its chain of managed pubs during the festive period.

The company, which runs 550 pubs across the UK, said sales during the four months to mid-January rose by 4% compared with the same period one year earlier.

"We have been pleased with the progress," said W&D chief executive Ralph Findlay.

W&D shares fell 5p to 632.5p as investors contrasted the company's figures with the 5.6% rise in sales reported over the same period by rival Greene King.

W&D, which brews Bank's and Pedigree beers, fought off a takeover bid from pub retail chain Pubmaster last August.

The company is planning to make a one-off payment to its shareholders worth �76m, or 80p a share.

W&D shareholders are due to vote on the proposal later on Friday.