No truth in Clarke/Thorley reports, says Mitchells & Butlers
Mitchells & Butlers (M&B) has denied weekend press reports suggesting that chief executive Tim Clarke would play no part in the group should it merge with Punch Taverns.
When Punch announced its merger proposals last month it said it envisaged Clarke taking the role of non-executive chairman of the new company.
However according to the Sunday Telegraph, relations between Clarke and Punch chief executive Giles Thorley are "fractious", and people "close to Clarke" said he probably wouldn't accept a position in such a merged entity.
An M&B source refuted the piece and its allegations, saying it was too early to make assumptions about what would or would not happen at the end of the group's strategic review, the results of which are due to be announced on May 20.
The group was "some way off" deciding the best option going forward, whether that was a merger, a series of disposals, asset swaps or acquisitions, the source added.
"To suggest Tim would make a decision based on anything other than what was in the best interest of shareholders is just not true," the source said.
M&B didn't want to make a quick decision regarding its future, the source concluded, "it wants to make the right one".
Elsewhere, private equity groups Blackstone and CVC were said to be plotting a rival takeover of M&B that would see existing shareholders retain nearly half the company, with the two US firms owning a controlling stake.
