spreadbetters bonanza on mab on 10 pound a point as of 29 april hop on baby

Article on timesonline today says that Co is expected to announce that its plans to sell a large stake to private equity has been shelved. A price of 400p per share had been speculated. It mentions Robert T's stake but omits to mention the increasing stake of Elphida, now over 6%.

http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article3950642.ece

Correction to post 21, Elphida now hold over 7.2%

LONDON (Thomson Financial) - Mitchells & Butlers, the embattled UK pub operator, will this week bow to pressure from Robert Tchenguiz, the pubs and property tycoon, by handing one of his key lieutenants a boardroom seat, the Sunday Telegraph reported.

Tim Smalley, an executive at the Tchenguiz investment vehicle, R20 -- M&B's biggest shareholder -- will be appointed a non-executive director of the owner of All Bar One when it unveils the results of a strategic review on Tuesday, it said.

Tim Clarke, M&B chief executive, is also expected to initiate a further analysis of M&B's property portfolio with a view to its eventual separation, the article said.



Mail on Sunday said that Mr T and Magnier/McManus scuppered any deal with Private equity as they were not happy with Private Equity only paying 400p per share. It is felt more attention will now be focused on the Co. property portfolio.
The Company is expected to reveal better than had been hoped trading results.

LONDON (Thomson Financial) - Mitchells & Butlers Plc. said it plans to convert to Real Estate Investment Trust status, or other appropriate OpCo/PropCo structure, when conditions in the market are suitable.

Unveiling the results of its strategic review, the group said it will will bolster its property expertise with the appointment of two non-executive directors from R20, Robert Tchenguiz's investment vehicle. Tchenguiz recently raised his stake in the Harvester and All Bar One pubs group to around 27 percent.

M&B said today that adjusted first half pretax profit fell 5.6 percent to 84 million pounds but said it remains confident of a trading out-performance in the full year. The managed pubs operator said same outlet like-for-like sales increased 3.4 percent in the first four weeks of the second half, with like-for-likes up 0.8 percent over the 32-week period.

The group increased its dividend 7.1 percent to 4.55 pence.

sp 327p.

Guscavalier comment: Fuller details of the review can be seen under interim results.
Although consumer spending is being squeezed, MAB may benefit to a degree by people switching from the more expensive restuarant food to pub dining. I went to a Toby Carvery with my wife for lunch. 2 Full gammon roast, 2 ice cream, 1 coke,
1/2pt Becks came to 20 which included over 3 tip. Very nice food.

firm move upwards today after this morning's announcement. Wouldn't be surprised if sp consolidates around 350p- 360p level.

wrong gus!

is it worth buying now at this all time low

MAB will go to 200p next

Elphida purchases further shares and now holds 8.08%

is it worth buying a few of mab now?

scotinvestor- I bought a few of these on the back of Elphida increasing their stake since these connections seem pretty shrewd. I think I read somewhere that T.Hemmings has also bought an interest. They are all a patient lot so what the sp will do short term, I dont kwow but, I wouldn't put you off otherwise. The business outlook will be difficult but, I guess these boys see a good angle there somewhere.

hyleo

is this worth buying now?

Mitchells & Butlers and JD Wetherspoon have both been upgraded to neutral from sell.

In a research note published late Tuesday, Goldman Sachs said that following its recent share price decline, Mitchells & Butlers now trades in line with the sector on a P/E basis on the broker's downgraded earnings forecasts.

The broker said it has cut its 2009 and 2010 EPS estimates to 26.55p from 29.51p and to 28.66p from 31.52p, respectively, primarily to reflect cost pressures.

It added it has reduced its six-month price target to 220p from 290p, reflecting lower earnings estimates and a lower estimated freehold value.

In a separate note, Goldman Sachs said it has also cut its price target and earnings estimates for JD Wetherspoon to reflect the increasingly negative trading environment.

However, it said it sees limited valuation downside following the recent share price decline, which has left JD Wetherspoon trading in line with the sub-sector.

The broker's 2009 and 2010 EPS estimates have fallen to 21.49p from 26.02p and to 24.48p from 28.91p, respectively, while the six-month price target has been reduced to 205p from 260p, Goldman Sachs said.


Heres one for you scotinvestor, I know you appreciate the experts view! sp 222p

Don't be gullible to believe all this upgrades by Goldman Sachs...they get it wrong more than 50% nowadays.

thats not bad for analysts or brokers.....they'll mention all their good tips too

Been away 2 weeks but, glad to see mab is in a better market, currently 240p against 200p and below. Probably helped by the Wetherspoon announcement and I also see that Elphida has increased stake again and now holds 9%.

Elpida increased stake to 10.08% from 9.06%. A possible blocker to any development put forward by Mr T's interests. sp 256p.

31 July 2008

Mitchells & Butlers plc to acquire 44 pub restaurants from Whitbread PLC
in exchange for 21 Express by Holiday Inn Lodges

Following Mitchells & Butlers stated intention to create additional value from its non-core assets, a swap of lodge assets for pub restaurants has now been agreed with Whitbread.

Under the terms of the agreement, Whitbread will acquire 21 of Mitchells & Butlers lodge sites (1245 rooms), currently trading under the Express by Holiday Inn brand, in exchange for 44 standalone Whitbread pub restaurant sites, currently trading under the Brewers Fayre and Beefeater brands. The exchange has been made on the basis of equivalent EBITDA of circa 9m from both the hotels and the pub restaurants and a valuation of circa 78m for both sets of assets to be exchanged.

These high quality pub restaurant sites will be converted to Mitchells & Butlers industry leading brands and formats with significant sales and profits uplifts expected. The transaction is expected to complete on 19 September 2008. In order to assist in funding the capital expenditure required for the conversions and to further reduce group debt levels, we intend to review opportunities for sale and leaseback financing on these acquired freehold sites. This would demonstrate the value of the properties acquired, in addition to the value that will be created from the operational profit uplifts generated by the brand conversions.

We will also continue to actively pursue the creation of additional value from our other non-core assets, including the Innkeepers Lodge units.

Commenting on the deal, Tim Clarke, Chief Executive of Mitchells & Butlers, noted:

'This deal drives further consolidation in top end managed houses and demonstrates our ability to create value from the non-core assets. Our brands can add a lot of value to these pub restaurant sites as we have shown with previous acquisitions.'
sp 246p

sp up again 267p

Strong sp of 280p today reflects speculation following press comment that Punch Taverns is attracting possible bid interest from CVC Capital Partners.It is felt that the weak pub sector may attract interest from cash rich funds. Certainly looks like the Elpida build up is proving timely.