M&B says bid undervalues company

May 4, 2006: The board of pub and restaurant group Mitchells and Butlers believes a bid for the company offering 550p per share "undervalues the business and its prospects". The bid values the company - which has brand including Harvester and All Bar One - at £2.7 billion.

The preconditional proposal came last night from a consortium led by wealthy businessman Robert Tchenguiz.

In a press statement, Mitchells and Butlers said: "The board does not believe that the proposal, which is subject to conditions, is in the best interests of the company and its shareholders."

Mr Tchenguiz's R20 group includes the Laurel Pub Company and Yates wine bars.