BUYOUT firms Blackstone and CVC are considering plans to jointly acquire a significant minority stake in Mitchells & Butlers (M&B), the pub group behind Harvester and All Bar One.

The two firms are known to have been working for several weeks on some kind of deal and are thought to favour acquiring a stake in the company. It is believed a full takeover bid is unfeasible in today’s market.

M&B is understood to have received one deal proposal by last Friday’s deadline and expects one or two more this week. Permira, another buyout firm, is also reported to be interested in buying a minority stake.

M&B launched a strategic review in January, with a sale of the company regarded as the most likely outcome.

That now looks improbable, given the lack of credit available to fund a full cash bid. Punch Taverns withdrew its merger offer for M&B on Friday.

The plans being considered by Blackstone and CVC are expected to involve offering a small premium to M&B’s current share price and are also likely to see it demand changes at board level. The pair will want to retain a big chunk of the operational management.

Shares in M&B closed at 342½p on Friday, giving the company a market value of £1.4 billion.

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