Insider Media Limited

The owner of Tottenham Hotspur has made a bid for Birmingham-based pubco Mitchells & Butlers. After his initial 224p per share offer was rejected, Joe Lewis said he would now consider stumping up 230p per share for the company, valuing it at £941m.

Mitchells & Butler confirmed this morning that the initial proposal had been declined, as it concluded the offer "significantly undervalued" its worth.

Bahamas-based Lewis, who owns a 23 per cent stake in the business, made the bid through his investment company Piedmont.

This morning, Mitchells & Butlers said it had been initially approached as the subject of a takeover bid on 27 August by Piedmont, which then offered 224 pence per share

Mitchells and Butler said the proposal was "a nil premium to the closing price of the company's shares on 26 August 2011".

At the time, the pubco's shares were trading at the lowest level since 25 March 2009 and at a 38 per cent discount to the highest trading level during this period of 361 pence on 6 January 2011.

Piedmont revealed today that it was considering making a possible move of 230 pence per share, a 2.4 per cent discount to the company's share price at the close of market trading on 12 September 2011.

Mitchells and Butler said: "The independent directors, who have been so advised by UBS Investment Bank, unanimously believe that the terms of the possible offer significantly undervalues the company and accordingly would not recommend an offer, if made, on such terms."

In 2010, Lewis spearheaded a boardroom shake-up at Mitchells and Butlers which led to the removal of the company's then-chairman Drummond Halland four new directors being appointed to the board. He was backed by 20 per cent shareholders John Magnier and JP McManus.

Mitchells and Butlers is currently on the lookout for a new chairman and chief executive, as John Lovering and Adam Fowle recently announced they would step down from their respective positions.