Laurel set for Mitchells & Butlers bid

The Laurel Pub Company is understood to be preparing a bid for Six Continents' pubs arm, Mitchells & Butlers.

Laurel owns about 600 pubs, including the Hogshead brand, and could try to top an earlier bid of £2.8b made by private equity firm BC Partners, which was dismissed by Six Continents last week.

BC Partners is expected to put in another offer following the official demerger on 15 April.

Analysts have estimated that the pubs division, which includes chains such as All Bar One and O'Neill's, could fetch around £3.4b.

A Laurel spokeswoman said: "We are looking at lots of opportunities in the market." However, she added that there had been "no direct" talks with Six Continents to date.

Six Continents has set up a bid committee made up of independent directors to appease shareholders, after rebuffing a £5.6b hostile bid from entrepreneur Hugh Osmond. This week, the group arranged disclosure requirements that would prevent anyone from building up shares in Mitchells & Butlers with a view to a hostile takeover bid.