Joe Lewis fires warning shot at M&B
Billionaire investor Joe Lewis fired a warning shot at Mitchells & Butlers (M&B) board yesterday with a veiled threat to vote out directors at the annual general meeting next month.
Lewis, through his Piedmont investment vehicle, insisted claims from M&B that rebel shareholders had tried to undermine the board's effectiveness were "without foundation".
Piedmont, which holds a 23% stake in M&B, also denied claims that it had sought the resignation of Simon Laffin, the senior independent director promoted to M&B chairman on Tuesday this week.
Lewis has hired Ken Costa, a Lazard corporate financier, to represent him. The appointment suggests he is expecting a on-going tussle with M&B's board.
A spokesman for Piedmont claimed Mr Lewis was left "stunned" earlier this week after M&B removed two of his representatives from the board and independently appointed Laffin as chairman.
Piedmont yesterday tried to play down the influence of those two directors in shaping strategy at the pub group.
"Piedmont notes that with two representatives on a board of 11, it was never in a position to veto any decision of the board," it said.
"Piedmont has at no stage acted to undermine the independence or effectiveness of the board."
Piedmont representatives Richard McGuire and Douglas McMahon left the board, as did Denis Jackson, previously a Citigroup banker, and Ray MacSharry, the former Irish finance minister.
In what appears to a veiled warning, Piedmont said: "The intention of the board to seek further independent director appointments has been noted and Piedmont expects that shareholders will have an opportunity to decide on candidates at the forthcoming annual general meeting."
It added: "Piedmont is a long term investor in Mitchells & Butlers and has always striven through its representation on the board to deliver greater company accountability, transparency and value on behalf of all shareholders.
"It believes strongly in the future prospects of the company and Piedmont remains an active and engaged investor."
