M&B bid collapse focuses attention on chief executive

THE decision by majority shareholder Piedmont to pull out of the running to acquire Birmingham-based pubco Mitchells & Butlers has refocused attention on the position of Jeremy Blood as chief executive.

Reports suggest the company will now be forced to find a permanent CEO as Mr Blood opts to step down following the collapse of the deal.

Billionaire tycoon Joe Lewis’ who owns the Piedmont investment vehicle, called time on his £940m takeover bid citing M&B’s weak trading and volatile market conditions.

Piedmont, which was already M&B’s largest shareholder with a 22.8% stake, said in a statement: “After careful consideration, Piedmont has decided not to proceed with an offer for M&B. Piedmont will remain an active and engaged shareholder in the company.”

It was always thought likely that Mr Blood, who took the helm in March, would step down sooner rather than later and the collapse of the deal is only thought to have hastened his likely departure.

The reports suggest he may have already told the board of his intention to stand down.
M&B, whose chains include Harvester and Toby Carvery, had already rejected two approaches from Mr Lewis, saying they significantly undervalued the business.

The latest bid by Piedmont last month, was pitched at 230p per share and valued the company at £940m.

Interim chairman Bob Ivell said: “The independent directors have been consistent in their view that an offer of 230p would substantially undervalue the company.”