Mitchells & Butler is set to rule out plans to spin off its £5.5bn property portfolio into a real estate investment trust (Reit). It will report to the city on May 22, alongside its first-half reports, on what it plans to do with its 2,000 pubs. Property tycoon Robert Tchenguiz, who holds 16% of shares, has made preparations for a hostile bid if M&B doesn't concede to his plan and embrace the structure of a Reit, a form of highly tax-efficient property trust. But M&B is thought to prefer some form of "halfway house" in the hope that unlocking just some of the value of its property estate will satisfy those shareholders who back Tchenguiz. One option is the "Tesco model", where a joint venture is set up with a partner who wants to invest in property. The Sunday Telegraph 06/05/07 (Business) page 1