Brief heads up on this as I read a report in the FT Market Report that there is a suggestion of these two getting together. Not sure I like the sound of it as a Restaurant Group holder but they are talking of £60 million of cost savings which is only about 2% of the proposed £3 billion combination but valued at say 8 times I suppose it could add up to a more significant £0.5 billion or so of extra market value for the combined entity.
Apart from rebuilding Mitchell &Butler's battered balance sheet the report also reports that Simon French, Cenkos analyst, said, "for Restaurant Group, the attractions would be to put its own brands into M&B’s high-quality estate, raising its London exposure and eliminating a struggling competitor in retail parks. Restaurant Group’s operational success and balance sheet discipline presents, in our view, the solutions to M&B’s problems of operational underperformance, high leverage and insufficient cash flow to pay a dividend."
Both stocks are on the rise, but it may all come to nothing as Mitchell & Butler have had failed negotiations in the past, but worth being aware of as it is certainly not something I had anticipated as being on the menu at Restaurant Group.