Buy-out firms Blackstone and CVC are understood to have been working together to jointly acquire a significant minority stake in Mitchells & Butlers. It is thought that a full takeover bid is not feasible in today’s market.
Permira, another buy-out firm, is also reported to be interested in buying a minority stake in the £1.4bn pub company.
The Mail on Sunday suggests that Blackstone could pay a premium to last week’s 342.5p closing price in order to build a stake of between 10 and 25%.
M&B is understood to have received one deal proposal by last Friday’s deadline and expects one or two more this week.
The Sunday Express says that Punch Taverns, who withdrew its merger offer last week, could also return with a private equity partner.
The Sunday Telegraph reports that Marshall Wace, one of the City’s biggest hedge funds, is still pressing for the merger and has trimmed its 6% shareholding in Punch while increasing its stake in M&B.
According to The Observer, M&B wants to bolster its balance sheet and allow it go on the front foot by seeking acquisitions. One target could be Punch’s Spirit estate of managed pubs.
The Sunday Times 30/03/08 (Business) page 3.1
The Observer 30/03/08 (Business) page 2
The Sunday Express 30/03/08 (Financial) page 2
The Mail on Sunday 30/03/08 page 66 (Financial Mail)
The Sunday Telegraph 30/03/08 (Business) page 2
