Discussions over a possible merger between Stonegate Pub Company and Town & City are “on-going” but still “slow-going”, according to a source, writes Ewan Turney. Stonegate, backed by private equity firm TDR Capital, completed the acquisition of 333 Mitchells & Butlers wet-led pubs in November with Town & City chairman Ian Payne acting as chairman for Stonegate as well before leaving his Town and City role a month later. A merger of the two wet-led operators has been mooted but it is believed the Icelandic bank Kaupthing, which owns Town & City Pub Company alongside Commerzbank, is proving a little unreceptive to the merger idea. A source said: “It is still slow going at the moment. Nothing has really happened over the past two weeks but discussions are still on-going.”