M&B considers defence

By Iain O'Neil

- Last updated on GMT

Related tags: Stock, Mitchells & butlers

Stan Moore and Colin Graves (pictured) made headlines in the first issues of Convenience Store
Stan Moore and Colin Graves (pictured) made headlines in the first issues of Convenience Store
Mitchells & Butlers is reported to be building a defence against a possible £4bn takeover. According to The Times the company is considering...

Mitchells & Butlers is reported to be building a defence against a possible £4bn takeover.

According to The Times the company is considering revaluing its assets and returning cash to shareholders.

Shareholder return​M&B, which owns brands including All Bar One and Harvester, may lift its net debt from £1.6bn to £2bn, in order to return proceeds to shareholders through a buyback or special dividend.

The company was also said to be considering appointing property consultants to revalue its estate.

Estimates say the revaluation could add £1bn to the £3.5bn value put on its assets in 1999 - the last time M&B's estate was revalued.

Last week MorningAdvertiser.co.uk revealed Iranian property tycoon Robert Tchenguiz was gathering a consortium to prepare a bid.

Rival bid​This week Bob Ivell, executive chairman of Regents Inn, confirmed he has been approached to head up a rival bid for Mitchells & Butlers.

Ivell, who oversees the Australian bar-brand Walkabout and comedy-club chain Jongleurs, told the Morning Advertiser's sister paper M&C Report: "With Tchenguiz's interested it shows there is potential for a deal to take place, and there is a lot of potential in M&B. I can confirm some interested parties have approached me but these talks are at a very early stage at the moment."

Related topics: Legislation, Mitchells & Butlers

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