LONDON (AFX) - The chief executive of Mitchells & Butlers PLC pubs chain, Tim Clarke, is expected to pursue talks with Whitbread PLC about acquiring its Beefeater and Brewers Fayre outlets after seeing off a 4.6 bln stg bid approach from property tycoon Robert Tchenguiz, the Mail on Sunday reported.
Clarke told the newspaper he was considering paying between 300 mln stg and 500 mln stg for the 250 Whitbread pubs, which were put up for sale last week.
M&B is talking to advisers about the move after the potential 550 pence-a-share offer from Tchenguiz's R20 bid consortium collapsed on Friday.
Clarke and his board had rejected the approach, but under a Takeover Panel deadline Tchenguiz has until tomorrow to table a formal offer to shareholders, the Mail on Sunday said.
However, with M&B shareholders looking for 600 pence a share and Tchenguiz unable to raise the extra cash, he decided not to go ahead with the bid.
Analysts suggest M&B will have its pub estate revalued later this year with expectations that the new valuation should reach 4.5 bln stg, the newspaper said.
According to Clarke, if M&B successfully acquired the Whitbread pubs, it would be able to refinance its borrowings and return about 300 mln stg to investors, the Mail on Sunday said. nick.huber@afxnews.com nh/ak COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited