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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 supermarketsâ€, complained Clarke, “beer is down to 11p per 100ml… it is not a responsible way to be promoting aleâ€. 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.
© db January 2007