M&B approaches Takeover Panel

By Ewan Turney

- Last updated on GMT

Related tags: Candidate, Mitchells & butlers

M&B: appointment blocked
M&B: appointment blocked
Mitchells & Butlers is to approach the Panel on Takeovers and Mergers to rule whether its largest shareholder has been trying to gain control of...

Mitchells & Butlers is to approach the Panel on Takeovers and Mergers to rule whether its largest shareholder has been trying to gain control of the board and the company.

The approach comes after three candidates for chairman were blocked by billionaire Joe Lewis, via his investment vehicle Piedmont.

Lewis, who owns a 23% stake in the company, blocked the candidates, which included former Conservtaive MP and ex-Asda chief executive Archie Norman.

M&B also said that Piedmont had asked for the resignation of senior independent director Simon Laffin.

In a statement M&B said: "In particular, the majority of the Board would like to bring to shareholders' attention two actions by a shareholder representative of Piedmont Inc which together could potentially undermine the independence and effectiveness of the Board.

"The first action taken was the frustration of the appointment of an independent Chairman to replace Drummond Hall, who has made public his intention to step down.

"The nomination committee of the Board put forward three independent candidates for election to the position of chairman, all of whom were vetoed at the final stage by a nominated representative of Piedmont who had been involved in the process from its beginning as a member of the nomination committee.

"The second action was requesting the resignation of the senior independent director, Simon Laffin, advising him that if he did not, a small number of large shareholders would vote against his election at the January 2010 AGM.

It added: "The Panel on Takeovers and Mergers has been approached and a submission will be made imminently regarding the cumulative evidence that a number of shareholders have been seeking to gain control of the Board and of the Company to advance the interests of a small group of shareholders at the expense of others.

"The majority of the Board is continuing to work to strengthen the Board through further independent appointments, and to identify an independent candidate to succeed the chairman, Drummond Hall, urgently."

Related topics: Mitchells & Butlers

Follow us

Pub Trade Guides

View more