The embattled pub operator Mitchells & Butlers is preparing to bring its biggest shareholder, the property tycoon Robert Tchenguiz, on to its board as it tries to rehabilitate itself in the eyes of investors after losing £390m in a failed property venture.

M&B is understood to be in talks to appoint Tchenguiz, or one of his representatives, as a non-executive director.

No agreement has yet been reached, but chief executive Tim Clarke could announce the appointment this Tuesday, when he is due to reveal the results of a strategic review, alongside interim financial figures.

The M&B board has previously indicated that it would hire a nonexecutive with property experience.

Tchenguiz holds almost 27% of M&B, owner of the Harvester and All Bar One chains, and he is keen to realise value from its £6 billion property portfolio.

Clarke is likely to say that he will try to strike a property deal when market conditions improve. He will do this by converting the company to a real estate investment trust (reit) or by separating the freehold assets from the operating business.

Combined with positive news on trading, this is likely to be enough to placate shareholders, angry at the £390m lost on the failed property venture.

One investor said: “There will be much less baying for blood if that is the case.”

Talks to sell a minority stake in M&B to a private-equity investor have been put “on the back-burner”, but the group may review its ownership of its ten-pin bowling arm as well as its German restaurants.

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