LONDON-R20 Ltd, the investment vehicle of Robert Tchenguiz, is in talks to form a consortium to bid for Mitchells & Butlers. A company statement adds that discussions are at an early stage and there can be no certainty that an offer will be made. In a brief response, Mitchells & Butlers said it notes the announcement from R20 and would make a statement should any details "be forthcoming."

Industry sources suggest that an R20-led consortium would offer between 500p and 520p, valuing the company at more than euro 3.33 billion ($4 billion.) Existing debt would take the price close to euro 5.8 billion ($6.9 billion).

Robert and Vincent Tchenguiz came to Britain after the fall of the Shah of Iran in 1979. Since then they have built the euro 2.89-billion ($3.47-billion) Rotch property empire. Two years ago, Rotch's co-founders Vincent and Robert Tchenguiz set up their own companies, Consensus and R20.

R20, Robert Tchenguiz's vehicle, has invested in Whyte and Mackay whisky, Welcome Break motorway services and a string of pub chains including the Hog's Head, Yates and Slug & Lettuce chains. The brothers have also been selling central London offices at a premium, and have put up for sale a package of Shell petrol stations jointly owned with London & Regional for more than euro 615 million ($747 million.)