MITCHELLS BUTLERS’ two main shareholders will seek to replace part of the British pub company’s board after JP McManus and John Magnier said they would support proposals by Joe Lewis’s Piedmont.

Mr McManus and Mr Magnier’s Elpida Group, the second-largest shareholder in Mitchells Butlers with a 17.6 per cent stake, has “no confidence” in Simon Laffin as chairman, according to a letter delivered late yesterday to the company’s board.

Elpida will vote alongside Mr Lewis, the British billionaire who holds a 22.8 per cent stake, at the pub company’s annual general meeting today, and said that Mr Laffin should not chair the meeting in Birmingham.

A Mitchells spokeswoman declined to immediately comment on Elpida’s letter.

Mitchells Butlers, the owner of the All Bar One chain, complained to the British Takeover Panel in November over the “increasingly difficult relationship” between its board and some of its largest investors. The panel ruled this month that no agreement or understanding was reached between shareholders.

Elpida has never acted “in concert” with Mr Lewis, it said in the letter.

Elpida questioned the legality of the removal of four MB directors late last year.

The new independent directors being proposed “are very experienced and will ensure that the business is focused on driving operational outperformance,” Elpida said.

Both Mitchells Butlers and Piedmont have rejected separate proposed compromises to resolve the dispute.

MB said two days ago it sought to ensure that no individual shareholder had excessive influence over board composition or decisions.

Piedmont said Mr Laffin had “orchestrated a relentless, baseless, yet highly damaging campaign”. – (Bloomberg)