BUSINESS STOCKMARKET: M&B considering hiving off property

Mitchells & Butler, owner of All Bar One and Harvester posted profits up by £30m to £220m.

M&B is considering hiving off its property into a real estate investment trust. This will split the company in two if M&B takes the tax attractive opportunity to pass its property into a REIT (real estate investment trust). It could make £500m from such a deal. The operating company would lease property from the property operation.

Boss Tim Clarke took the opportunity to lambast supermarkets for retailing beer at rock bottom prices. “In some supermarkets”, complained Clarke, “beer is down to 11p per 100ml… it is not a responsible way to be promoting ale”. The smoking ban is hitting business in Scotland – in the past seven weeks drinks sales in Scotland fell by 2%. Tim Clarke predicts sales in Scotland will remain flat.

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© db January 2007