Piedmont hits back in M&B takeover tussle

PIEDMONT, the biggest shareholder in Birmingham-based pub company Mitchells & Butlers, has said it would consider increasing its possible offer to take over the plc.

The firm, an investment vehicle for Bahamas-based billionaire Joe Lewis, owns 22.8% of the pub chain and has been at the centre of two possible buyout bids in less than a month.

On Tuesday, M&B said Piedmont’s latest possible offer of 230p per share would be rejected should a formal offer be made as it undervalued the company.

Today Piedmont has sought to clarify its position in a statement to the City, saying it would consider going above this 230p threshold.

It said: “Piedmont notes the reference in the press that 230p per M&B share represents (its) ‘final bid’.

“Piedmont wishes to clarify it has not stated it will not increase its offer price over 230p per share.

“Piedmont reserves the right to increase its offer price above 230p and also reserves the right to reduce the level of consideration to be paid.”

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It said it would do this if the board of M&B agreed to such a variation or a third party announced a possible or firm intention to make an offer for M&B at a price lower than 230p.

Piedmont also said it would reduce its offer if M&B announced or paid a dividend or payments to shareholders or if the pubco issued additional shares above the existing issued share capital of 409,459,926.