M&B board rejects Piedmont takeover offer

By Emma Eversham

- Last updated on GMT

Related tags: Stock

Mitchells & Butlers board has rejected Piedmont Incs offer
Mitchells & Butlers board has rejected Piedmont Incs offer
Mitchells & Butlers’ board of directors has rejected a takeover offer from Piedmont Inc, the investment company owned by Bermudan billionaire Joe Lewis.

Piedmont made an offer of 230 pence per share yesterday, which would value the company at around £940m.

However, in a statement, M&B’s directors told investors to reject the offer because it ‘significantly undervalues the company’.

“Independent directors, who have been so advised by UBS Investment Bank, unanimously believe that the terms of the Possible Offer significantly undervalues the Company and accordingly would not recommend an offer, if made, on such terms,” it said.

Piedmont, which owns a 22.8 per cent share in M&B, first made an offer of 224 pence per share on 27 August when the company’s shares were trading at the lowest level since March 2009.

Related topics: Business, Pubs & Bars

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