The battle for the future of Mitchells & Butlers (M&B) intensified as Piedmont, the investment vehicle owned by Joe Lewis, who owns 23 per cent of M&B, accused the managed pub operator of "presiding over a culture of obfuscation and excess".
In a letter to shareholders which pulled no punches in responding to yesterday's appeal by M&B to shareholders to vote against AGM resolutions put down by Piedmont, the investment group said the pub operator had presented a "highly partial, misleading and prejudicial account of events" in recent months.
It said categorically it was not trying to take over the company, as was being suggested by M&B.
"Let us be absolutely clear," Piedmont wrote, "[the firm] has never sought to take control of M&B - nor does it seek control now - as the current board has alleged. Our perspective is simply that the company is a long term value proposition - for us and all shareholders."
What it wanted, however, was "a complete overhaul of the board, and a review of its key advisers" if the potential of the business was to be realised.
Piedmont wants to see four of its nominations to the board, including ex-Scottish & Newcastle managing director Jeremy Blood, confirmed at M&B's AGM on January 28, a proposal M&B has urged shareholders to reject.
"To suggest, as M&B did in its letter of January 11, that these individuals are not in fact independent and would serve Piedmont is not only totally false, it is an insult to the reputation of the candidates themselves, and completely misleading to shareholders of the company," Piedmont said.
Piedmont further accused M&B of using "independence a something to be horse traded as suits the agenda of a small group of individuals" and having "little regard for the true value that independent directors could bring".
It also accused M&B's board of having cost investors £500m "through their mistakes in recent years and [presiding] over a culture of obfuscation and excess".
Piedmont went on: "We would urge all shareholders to closely examine and challenge the version of events advanced by the company.
"We maintain that the interests of all shareholders will be best served by the infusion of independence, vigour and a fresh perspective in the shape of the four nominees."