Investor and MPs wade into Mitchells & Butlers boardroom battle

An institutional investor in pub operator Mitchells and Butlers (M&B) has stepped forward in a bid to intervene in a power struggle between the company and its biggest investors, including billionaire Joe Lewis.

The spat has seen continued disagreements over the composition of the company's board.

In an announcement to the City today, M&B said the Association of British Insurers (ABI) had written to it and indicated that it would accept a compromise agreement with Lewis's investment vehicle Piedmont.

The letter urged the company to accept some of Piedmont's nominations to the board, and recommended an election of all directors after 12 months on the basis of their performance.

Meanwhile, the Guardian reported this morning that MPs are also set to involve themselves in the conflict.

Liberal Democrat MP Vince Cable is writing to Adair Turner, chairman of the Financial Services Authority (FSA), highlighting his concerns about the influence exercised over M&B by a group of shareholders.

And Labour MP John Grogan, chair of the all-party beer group, is expected to back an early day motion tomorrow, which will be backed by both Cable and Tory MP Nigel Evans.

The early day motion asks MPs to register "great concern" about "the apparent threat to the interests of 60,000 small shareholders in M&B". It alleges that 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".


Mitchells & Butlers fined £20,000 for food safety breaches >>

Takeover Panel finds no evidence of bid to seize control by M&B investors >>

Unrest continues between pub operator Mitchells & Butler and investor >>


By Neil Gerrard

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