Major shareholders at M&B revealed

A further three racing magnates have been revealed as major shareholders in Mitchells & Butlers.

Together Michael Tabor, Dermot Desmond and Derrick Smith own more than 5% of the company.

The Observer reported that these three are thought to be associates of both of the group's major shareholders, Piedmont (Joe Lewis's investment vehicle which owns 23%) and Elpida (John Magnier and JP MacManus, 17%).

Sector analyst Mark Brumby, of Astaire, said: "Given the maths, M&B's AGM towards the end of January could see the group's major shareholders flex their muscles. Ultimately, a number of directors could be voted off the board including the chairman elect, Simon Laffin."

Tabor and Smith have backgrounds in betting shops, but are now powerful investors in the world of horse racing.

The news comes following boardroom tussles between the group's two biggest shareholders, Piedmont and Elpida, and the rest of the pub group over the past two weeks.

M&B has called in a takeover panel to investigate whether "a number of shareholders" are working together to take control of the business without making a bid, and has fired their four boardroom representatives.