Joe Lewis calls time on M&B bid

BILLIONAIRE tycoon Joe Lewis has called time on his £940m bid for Birmingham pub operator Mitchells & Butlers.

Lewis’s Piedmont investment vehicle cited the company’s weak trading and volatile market conditions.

The company, 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.”

A spokesman for Piedmont told the Reuters news agency that the company’s weak fourth quarter trading was a factor in pulling the bid.

M&B, whose chains include Harvester and Toby Carvery, last month reported slowing sales growth and warned the UK consumer environment continued to remain challenging with conditions compounded by cost pressures in energy, duty and food.

“Since we made our proposal economic conditions have deteriorated, market volatility has increased and M&B’s trading statement suggested further weakness. The fundamental valuation and outlook is now more uncertain and clearly there is increased risk around the business,” the Piedmont spokesman said.

M&B, which runs over 1,600 pubs and restaurants, has rejected two approaches from Lewis, saying they significantly undervalued the business.

The latest, in September, 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.

“We will continue to focus on our growth strategy for developing Mitchells & Butlers further as the UK’s leading operator of restaurants and managed pubs creating value for all shareholders.”

Lewis, who also owns Tottenham Hotspur football club, had until next Monday to make a firm bid or walk away.