M&B prepares for bloody battle

Shareholders at Birmingham-based pubco M&B may need a strong stomach when they attend the company’s AGM in the city on Thursday as the battle for control of the firm’s boardroom comes to a head.

Majority shareholder Piedmont, investment vehicle for Bahamas-based billionaire Joe Lewis, is aiming to give the existing board – including chairman Simon Laffin – a bloody nose by installing four new directors and ousting Mr Laffin from his post.

Piedmont, which owns 23% of M&B, wants the company to leverage greater value from its strong portfolio of brands and has spent the past few days talking to other non-aligned shareholders in an effort to drum up support for its campaign.

Reports have suggested that many may be on the verge of siding with Mr Lewis but the battle could go down to the wire when shareholders gather for their momentous meeting.

Piedmont has nominated four potential non-executive directors: John Lovering, former chairman of Debenhams, Simon Burke, former chief executive of Hamleys toy shops, Jeremy Blood, a former director of Scottish & Newcastle, and Mike Balfour, founder of health club chain Fitness First.

It is thought a good old fashioned compromise may be agreed with the board supporting Messers Lovering and Burke but rejecting the other nominees. With Piedmont refusing to back Mr Laffin, his position may also be untenable.

Strengthening the Piedmont campaign is the likely support of Elpida, investment vehicle for Irish racing magnates JP McManus and John Magnier, who together hold a 17.6% stake in the company.

The existing board tried to offset the campaign last week when it outlined its plans for growth to city analysts.

The proposals include leveraging value from its pubs – which include the All Bar One, Harvester and Toby Carvery brands – by increasing food sales.

However, whether the grand design comes too late will be exposed when shareholders gather at the International Convention Centre on Thursday for what promises to be a very lively meeting.