Fat ladies and other tales

So the fat lady has finally sung regarding which pubco will be first to convert to a real estate investment trust (REIT).

True, Enterprise Inns hasn't signed on the dotted line yet, but most expect it to after the taxman gave his permission for the pubco to take the path to REITdom.

Of the others, Punch Taverns' Giles Thorley hasn't changed his less-than-enthusiastic tone on the prospect, but understandably has not completely ruled it out. Other companies one might suspect of going down the REIT route were keeping schtum when I did a ring round last week.

While the taxman's blessing to Enterprise didn't surprise many in the pub industry, those in the Square Mile got rather excited after what has been a quiet few months. Shares in some pubcos rose faster than the sap in a sturdy sycamore in spring, with Enterprise's rocketing 29 per cent the day its news came out, and Punch Taverns' up a more modest 11 per cent.

Of all the REIT-related share price hikes the one that surprised me was Marston's, where shares leapt 17 per cent. Ah, opined several City types, Marston's is an obvious candidate for the flurry of takeover activity that will inevitably follow once Enterprise and, some contend despite Giles Thorley's suggestions to the contrary, Punch convert to REITs.

Last November Marston's itself virtually ruled out becoming a REIT, but left the door ajar. We will find out whether the Midlands brewer has indeed had a change of heart when it announces its interim results at the end of this week.

Also this week we'll reacquaint ourselves with Mitchells & Butlers, which announces half-year results and the outcome of its eagerly awaited strategic review on Tuesday.

The recent fuss surrounding REITs meant the trials and tribulations of Tim Clarke and co had become almost a distant memory.

That is all about to change…