Joe Lewis, the activist shareholder engaged in a bloody battle with the board of Mitchells & Butlers, has called on the pub company to throw out its banks advisers, focus on driving profits and increase disclosure.
Richard McGuire, who speaks for Lewis through investment vehicle Piedmont, issued the demands ahead of what is expected to be an explosive annual meeting at M&B this week.
The Piedmont representative – who was ejected from M&B's board in December – also revealed that a strategic review commissioned in the wake of the pub company's failed attempt to set up a property joint venture in 2008 cost the company £13m . A failure to close out hedges linked to the venture led to two years of losses and cost former chief executive Tim Clarke and ex-finance director Karim Naffah their jobs. M&B has never published the review nor disclosed the cost.
In a further shot across the bows, Mr McGuire called into question the "motivations and judgment" of Adam Fowle, M&B's chief executive, in the wake of the shareholder row and suggested the pub boss would be under pressure to perform in the coming months.
Mr Lewis, the British billionaire who famously lost about $1bn (£620m) following the collapse of US investment bank Bear Stearns, owns a 23pc stake in M&B and has called on Simon Laffin, the pub group's chairman, to stand down. The activist shareholder will this week use the AGM to propose a slate of four new directors at the pub group including John Lovering, the Debenhams chairman, and Simon Burke, the former Hamleys boss.
Piedmont could win support from 17.5pc stakeholder Elpida, the investment vehicle of Irish horseracing tycoon JP McManus and John Magnier, as well as non-ABI affiliated investors holding as much as 15pc of the shares.
ABI members – who hold more than 20pc of M&B's stock – are expected to support the current board, while it remains unclear how the estimated 60,000 small shareholders at M&B will vote.
Sunday Telegraph, Business, p1
