A penny for your company

7 May 2006 By Hugo Dixon Follow @hugodixon

Quasihostile bidders for UK companies like Tchenguiz s approach to M&B often get flummoxed when told to put up or shut up. A cheeky way of buying time would be to put in a fullyfinanced firm offer of 1p for the target s entire share capital.

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Robert Tchenguiz, the property entrepreneur, conceded defeat in his battle for Mitchells & Butlers, the UK pub group, on Friday.

R20, his investment vehicle, said it had decided not to make an offer. Tchenguiz had until Monday to make an offer under the Takeover Panel's put up or shut up rule.

Tchenguiz whose family along with Apax Patners, OchZiff and HBOS were proposing to put up £900m of equity – last week put forward a preconditional offer of 550p a share that was dependent on M&B board approval. The M&B board rejected it.

Tchenguiz was advised by Deutsche Bank. Goldman Sachs, which had been the adviser and which had also been going to provide equity backing, withdrew after M&B made clear that an approach would be considered hostile.

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