LONDON (Thomson Financial) - Private Equity groups Blackstone and CVC are considering a proposal to buy a significant minority stake in Mitchells & Butlers PLC, the Sunday Times reported without citing sources.
The paper said the proposal is expected to be at a small premium to last week's closing share price of 342-1/2 pence and the plans are also likely to include board changes.
The move follows the withdrawal on Friday of a merger proposal by Punch Taverns PLC, which said the deal was no longer in the best interests of Punch's shareholders.
The Sunday Times said M&B is understood to have received one deal proposal by Friday's deadline and expects one or two more, adding that Permira is also reported to be interested in a minority stake in M&B. kathy.sandler@thomson.com ks/jlw COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.