Tchenguiz drops M&B pub interest
Robert Tchenguiz' R20 investment group says it will not now be making an offer for Mitchells & Butlers.
After months of specualtion the group made an approach last week offering 550pence a share for M&B.
However, M&B's board rejected the proposal saying it undervalued the company and it now appears any deal is off - especially as the deadline imposed by the Takeover Panel falls today.
In a statement R20 said: "On 3 May 2006, R20, on behalf of a consortium of investors, submitted a proposal to the board of M&B to acquire the whole of the issued share capital of M&B at a price of 550p per share in cash. Further to the 'put-up or shut-up' deadline of 8 May 2006 imposed by the Takeover Panel, the announcement made by M&B on 4 May 2006 and the decision of the board of M&B not to support the consortium's proposal or to engage in discussions with it, the consortium has decided not to make an offer to acquire M&B."
Mitchells & Butlers responded by saying it would concentrate on strengthening its own business.
A statement said: "Mitchells & Butlers plc acknowledges the announcement by the R20 Consortium on 5 May that it does not intend to make an offer for the Company.
Mitchells & Butlers will continue to pursue its operational and financial strategy. The Board believes that the Company has excellent prospects for organic growth and is well placed to take advantage of consolidation opportunities. The priority remains to maximise value for shareholders."
The statements bring to an end months of specualtion.
Rumours now suggest M&B may go on the acquisition trail itself - starting with some of the pubs released by Whitbread.
