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Pub chain hits out at rebel shareholders
All Bar One pubs chain Mitchells & Butlers today accused its major shareholders of sabotaging attempts to appoint a new chairman.
The group, which also operates the Harvester and O'Neills chains, has approached the Takeover Panel after claiming it had evidence that a number of key shareholders were seeking to gain control of the board.
Mitchells said a boardroom representative of billionaire currency trader Joe Lewis, who holds a 22.3% stake in the company, had vetoed the appointment of three independent candidates for the post of chairman. This was despite being involved in the selection process as a member of the nomination committee.
It is thought that new ITV boss Archie Norman had been one of the candidates in the frame to replace current non-executive chairman Drummond Hall.
Mitchells said Piedmont, Mr Lewis's investment vehicle, also requested the resignation of senior independent director Simon Laffin. If he does not step down, Mitchells has been told that a small number of large shareholders will vote against his election at the company's annual meeting in January.
Other big investors in Mitchells include John Magnier and JP McManus, the Irish horseracing tycoons who between them account for 17.6% of the shares.
Mitchells said the actions of the Piedmont representative undermined the "independence and effectiveness" of the company's board.
It added: "The Panel on Takeovers and Mergers has been approached and a submission will be made imminently regarding the cumulative evidence that a number of shareholders have been seeking to gain control of the board and of the company to advance the interests of a small group of shareholders at the expense of others.
"The majority of the board is continuing to work to strengthen the board through further independent appointments, and to identify an independent candidate to succeed the chairman, Drummond Hall, urgently."
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Friday 25 May 2012
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