M&B still keen on Piedmont compromise
Mitchells & Butlers (M&B) has reiterated that it is willing to reach a compromise with its largest investor Piedmont.
In a statement to shareholders, M&B said it was still willing to accept two of Piedmont's nominees to the Board — Simon Burke and John Lovering — but is still urging shareholders to vote against Michael Balfour and Jeremy Blood.
Under the compromise, John Lovering would take over as chairman and Simon Laffin revert to his previous role of senior independent director.
However, it has yet to receive a formal response from Piedmont's advisors, Lazard. It has previously stated that its four nominees should be appointed en-bloc.
M&B said: "In considering how to respond to Piedmont's proposal, the Board recognises the right of shareholders to nominate directors and, at the relevant General Meeting, to contribute to the composition of the Board.
"However, it does not believe it is appropriate for one 23% shareholder to nominate and appoint both the Chairman and a majority of the Board. Rather the Board must manifestly be seen to protect all shareholders interests equally.
It added: "The Board remains willing to pursue the compromise offer made to Piedmont and will continue to be available to do so up until the AGM next week."
EDM
Yesterday, Labour MP John Grogan tabled an early day motion in Parliament expressing his concern over the ugly spat.
It said: "That this House notes with great concern the apparent threat to the interests of the 60,000 small shareholders of the long-established pub company Mitchells and Butlers, where a small group of friends and minority shareholders domiciled outside the UK appear to be seeking to gain control of the company to advance their own interests at the expense of others.
"Further notes the uncertainty this is generating for the firm's 40,000 staff; and urges the Government to be alert to any infringements of takeover rules and to urge the Takeover Panel rapidly to undertake a thorough and detailed investigation of the relevant facts in the case."
The Takeover Panel cleared Piedmont of any wrong-doing at the end of last week.
