Mitchells & Butlers (M&B) is considering becoming the first UK pub group to become a Reit (real estate investment trust). The company is thought to have the backing of financier Robert Tchenguiz, who holds 19% of M&B through shares and derivatives. Both parties believe a Reit is the best way to unlock value from the company’s property portfolio. The Reit will absorb the group’s debt of £2.5bn, and an operating company will manage the pub and restaurant estate. Shares in M&B jumped 4.8% to 660p at the news. Meanwhile Tchenguiz has denied rumours that he would need to sell his stake in M&B to cover recent losses by retailer J Sainsbury, of which he owns 10%. Financial Times 10/11/07 page 17 (Companies & Markets), page 36 (Companies & Markets) The Times 10/11/07 page 75 (Large Caps, Business) Daily Mail 10/11/07 page 108 (Market Report, City & Finance)

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