Piedmont, the largest shareholder in Mitchells & Butlers
Mitchells & Butlers, which runs around 1,600 restaurants and pubs across Britain and whose chains include Harvester and Toby Carvery, rejected earlier this year two bid approaches from Piedmont, the investment vehicle of the Bahamas-based billionaire currency trader Joe Lewis.
Piedmont's concerns related to Mitchell & Butler's full-year results on Tuesday, which included the lack of a dividend, the company's 400 million pound pension obligation and falling operating margins, a person close to the investment vehicle said, according to the article.
If you look at Marstons, Greene King and other pub companies they are giving cash back...Piedmont is concerned about the value of its stake, the person said, adding that Piedmont was seeing how the situation will develop, the FT reported.
Mitchells & Butlers on Tuesday posted full-year adjusted profit before tax down 7.7 percent but in line with forecasts.
The British company said it was confident it could overcome the tough consumer environment in 2012 after making a good start to its new financial year, helped by mild weather.
Officials with Piedmont could not be reached for comment by Reuters.
(Reporting by Michelle Martin; Editing by Matt Driskill)