Piedmont agrees to compromise with M&B - up to a point

Piedmont Inc., the investment vehicle in dispute with Mitchells & Butlers (M&B), said today it is not seeking to control the managed pub group.

Responding to M&B's offer of compromise over issues relating to the make-up of the pub group's board and other matters, in an open letter to shareholders Piedmont said it had "never sought control" of M&B and that it was "open to compromise".

"We welcome a solution that serves the company's best interests," it added.

However it said it was "reasonable to expect that others respect Piedmont's rights as a shareholder, and take proper account of events of the past two months.

"It is also reasonable to expect that when Piedmont acts as an active and engaged shareholder, consistent with the best corporate governance norms, that it is held to the same standard as others."

Piedmont said it noted "the groundless concert party allegations" levied against it had been thrown out by the Takeover Panel last week. It also claimed it was the victim of the M&B board's decision to "summarily evict" its two representatives, Richard McGuire and Douglas McMahon from the board.

It said it wanted to find the right person to take the company forward, but that this was not current chairman Simon Laffin.

The investment firm said Laffin had "orchestrated a relentless, baseless, yet highly damaging, campaign against Piedmont and its officers". Consequently Laffin would not receive Piedmont's support at the M&B AGM next week.

Piedmont represents the interests of billionaire investor Joe Lewis, who holds 23 per cent of M&B's shares.