Mitchells & Butlers investors call for clarity over dismissals

The investment company that has a 23% holding in pub operator Mitchells & Butlers (M&B) has called for "clarity" over the company's decision to dismiss four directors.

 

Piedmont Inc, owned by Bahamas-based billionaire Joe Lewis, said in a statement today: "To begin addressing the need for transparency, Mitchells & Butlers should provide clarity for all shareholders as to why it has removed so many directors from the board."

 

The move marks the latest chapter in a battle for power at the company, details of which emerged last week when M&B announced that it would submit evidence to the City takeovers watchdog that some of its biggest shareholders were trying to take control of the company.

 

M&B's decision was prompted by Piedmont Inc's move to block the appointment of Archie Norman as chairman, as well as demanding the resignation of Simon Laffin, who was then a senior director.

 

But just a day later M&B appointed Laffin as its chairman and revealed that it would dismiss Richard McGuire, a director who was appointed by Piedmont Inc.

 

Denis Jackson, Ray McSharry, and Douglas E McMahon were also removed from their posts.

 

This morning Standard Life, which has a 4.85% stake in M&B, said it supported the actions taken by the company's independent directors.

 

M&B appoints Simon Laffin as new chairman >>

 

M&B to tell takeover watchdog of power grab by its biggest shareholders >>

 

Greene King to buy seven pubs from M&B for £12.7m >>

 

By Neil Gerarrd

 

E-mail your comments to Neil Gerrard here.

 

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