M&B reports £274m hedging loss

risk-0208-05-gif

UK pub operator Mitchells & Butlers (M&B) has reported a £274 million after-tax loss as a result of it having to close out interest rate swaps and inflation hedges on a failed property joint venture.

The hedges were executed in July last year to support a proposed £4.5 billion joint venture with London-based property investment vehicle R20. But plans for the enterprise were shelved as credit conditions turned sour, leaving the company holding naked swaps positions.

The ill-fated deal required

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: