Robert Tchenguiz, the property entrepreneur, is in talks with Mitchells & Butlers (M&B) about reducing the size of their planned £4.5b joint property venture in an effort to revive the deal.

The venture was postponed in August due to the global credit crunch, but Tchenguiz is understood to be keen to resurrect a deal after suffering a sharp drop in the value of his 10% stake in J Sainsbury. 

M&B is also keen to revive a deal as it is sitting on a potential loss of £140m from hedging the property joint venture.

A source close to M&B told The Times that one of the options being looked at was removing some of the pubs from the proposed joint venture with the aim of adding them at a later stage once the credit markets have improved.

Meanwhile, Blackstone-owned restaurant group Tragus is thought to have hired Goldman Sachs and Citigroup to advise it on a possible £500m-plus flotation in the new year.

Tchenguiz denies Mitchells & Butlers share sale >> 

Irish duo build M&B stake >> 

Mitchells & Butlers' debt grows as deal with Robert Tchenguiz is delayed >> 

Stock market flotation remains an option for Café Rouge owner >>

By Daniel Thomas

E-mail your comments to Daniel Thomas here.