Mitchells & Butlers (M&B) has formally rejected Robert Tchenguiz’s £2.8bn bid for the pub and restaurant company, which owns the Harvester, O’Neills and All Bar One brands.

The 550p per share offer was turned down because M&B believed “the proposal undervalues the business and its prospects”.

M&B, which owns 1,300 managed pubs and 640 managed restaurants in the UK, said: “The board believes that the company has a proven sales focused growth strategy which is driving strong earnings growth, dividends and asset appreciation. The priority remains to maximise value for shareholders.”

Tchenguiz’s R20 investment vehicle had been given a deadline of 8 May to make a formal bid since expressing an interest in M&B in early April. Details: www.mbplc.com