M&B holds crisis talks with shareholders ahead of AGM

11 January 2010
M&B holds crisis talks with shareholders ahead of AGM

The board of pub operator Mitchells and Butlers (M&B) and its major shareholders are holding crisis talks in a bid to avoid a showdown at the group's annual meeting at the end of the month.

Leading shareholder Joe Lewis, the Bahamas-based billionaire who owns a 23% stake in the company, is at odds with the pub operator over strategy.

Piedmont, Lewis' investment vehicle, has proposed four new board members after M&B ousted two Piedmont board representatives and two other non executive directors after allegations were made that they were not acting independently of each other.

It is thought that M&B will tell shareholders whether or not to back the four independent board nominees put forward by Piedmont. M&B fears that Piedmont could muster the majority of shareholders on 28 January and force the nominees through.

Talks have begun in an attempt to find a compromise, according to the Financial Times. However, one person close to the situation told the paper: "It is not an issue about the calibre of these people. If there is a debate to be had, it is whether a 23% shareholder should be nominating up to six directors."

Piedmont declined to comment as talks continued.

Mitchells & Butlers reports strong Christmas and New Year sales >>
Battle of the M&B board rages on >>
Mitchells & Butlers investors call for clarity over dismissals >>

By Caroline Gosney

E-mail your comments to Caterer News here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next pub job here with Caterersearch.com jobs

Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking