Birmingham-based pubs group Mitchells & Butlers is expected to bow to pressure this week and appoint a key lieutenant of property tycoon and majority shareholder Robert Tchenguiz, to the company's board.
The move is expected to lead to the Harvester and All Bar One owner initiating a further review of its property portfolio with a view to its eventual separation.
The pubs group unveils the results of its long-awaited strategic view on Tuesday and reports have suggested the publication is likely to be accompanied by the announcement that Tim Smalley, an executive at the Tchenguiz investment vehicle, R20 - M&B's biggest shareholder - is to become a non-executive director of the firm.
His appointment suggests an understanding could have been reached between Mr Tchenguiz and chief executive Tim Clarke over the long-term future of the company.
Mr Tchenguiz has hinted in the past he may move to oust Mr Clarke should the company fail to explore a possible takeover or private equity bid.
M&B, which also owns the O'Neill's chain, became a takeover target after making a disastrous £274 million loss on transactions relating to a property deal it was forced to abandon last year.
Reports have previously hinted that firms such as CVC and Blackstone may be interested in acquiring a share of the business.
The suitors were thought to be looking at providing a loan which would convert into a stake in the company.
There were also suggestions that Midland rival Punch Taverns may be interested in a merger that would have created the UK's largest pubs group.
However, talks between the two firms collapsed, with Punch pulling out of the merger and then saying "any transaction" with M&B would not be in the interest of its shareholders.
The breakdown of the talks was a big blow for M&B's management, which has been under shareholder pressure since the REIT failure.
The firm has had to trim aims for a full blown sale to private equity as the credit crunch has left buyout firms lacking in funding, however, M&B is thought to be persisting with the possibility of selling a minority stake.
Last month it said it was in discussions over the sale of up to 29.9 per cent of the business to private equity at a "material premium" to its current price.
But there is talk that other suitors may be entering the fray, with Irish racing tycoons John Magnier and JP McManus reportedly adding to their position, while fellow shareholder, Mr Tchenguiz, is also said to have been adding to his 23 per cent holding in recent weeks and is now reputed to have increased this to around 27 per cent.
It has been speculated that both the Irish duo and Mr Tchenguiz may be seeking to block private equity from taking a big stake in the company, which may leave M&B with an even trickier situation on its hands.
Meanwhile, the group's interim results are also expected to come under scrutiny on Tuesday.
Analysts are forecasting a one per cent decline in clean operating profit for the first half to £159 million, with the interest impact on the group's £400 million hedging losses driving pre-tax profit down 18 per cent to £73 million.
In early April, M&B reported resilient sales for the first 27 weeks of the year. Same outlet like-for-like sales were up 0.6 per cent in the first 27 weeks, with same outlet like-for-like food sales up 4.8 per cent.
The group said the outlook for consumer confidence remained weak and said the on-trade beer market was likely to remain depressed with a continuing shift to the off-trade being exacerbated by duty increases.
However, it said it remained confident in the growth prospects of its value for money food offers, continuing strong drinks market share gains and further productivity improvements.
