Mitchells & Butlers is considering an approach to Georgica, Britain’s biggest tenpin bowling operator, amid signs that a takeover of the embattled pub and restaurant group could be faltering.

A strategic review being handled by Citigroup is also looking at an outright or partial sale of M&B, although the credit crunch has reduced the chance of a competitive auction.

Several private equity firms – including Cinven, Apax Partners, Terra Firma, Permira, TPG and Kohlberg Kravis Roberts – that were mentioned as potential suitors for M&B appear to have ruled themselves out of the running before today’s deadline for indicative offers.

That could leave CVC Capital Partners and Blackstone, possibly working together, as the main rivals to Punch Taverns, which has proposed a merger. However, private equity’s ability to fund a deal is in doubt, while Punch is said to be unconvinced of M&B’s desire for a sale and is said to be considering its position.

Punch said last month that it would give M&B shareholders 50 per cent of the enlarged company and a £175 million cash sweetener. However, shares in Punch have fallen sharply amid concerns that the deal would heavily dilute earnings. The company tried to allay those fears by highlighting the strategic benefits from merging M&B with Spirit Group, its managed pub and restaurant division.

The information memorandum sent to potential buyers of M&B is understood to highlight a possible “combination” of Georgica’s Tenpin operation with its chain of 24 Hollywood Bowl venues. Analysts said that could lead to a spin-off of the enlarged business. Tenpin, which has 39 outlets, is Georgica’s main business after a series of recent disposals. Georgica has a market value of about £47 million.

The memorandum also posits a sale of Alex, M&B’s German restaurant chain; further disposals of pubs with redevelopment potential; and swapping its lodges for further large pubs, an idea it is understood to have discussed with Whitbread. It also mentions “consolidation opportunities”, although the £391 million loss M&B made on closing a hedge position after its failed property deal with Robert Tchenguiz makes that unlikely in the short term.

Some analysts have suggested that Tim Clarke, the chief executive, and the rest of M&B’s senior management are doing all they can to ensure the company remains independent.

M&B declined to comment, but sources close to the company insisted that there were “no sacred cows”. The source added: “We’ll consider any legitimate proposal, whether an all-cash offer, a cash and stub equity offer or a partial offer.

Shares in M&B closed down 3½p, or 1.05 per cent, at 329½p.

Last week, Julian Easthope, at Lehman, cut his target price for M&B from 450p to 235p and said in a note to investors that M&B may need a capital injection.

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