Punch Taverns, Enterprise Inns and the British Beer & Pub Association (BBPA) will consider legal action if the vote by MPs to defy the government and break the beer tie is passed into law, writes The Times.
According to the newspaper, Punch Taverns chairman Stephen Billingham confirmed that a legal challenge was possible, while industry sources said that the chances of action by the BBPA in the event of a change of law were “pretty high”.
Shares of the big tenanted companies fell sharply yesterday as the market digested the implications of the surprise vote by MPs on Tuesday in support of an amendment to the proposed statutory code governing the way the so-called pubcos treat their tenants.
Punch Taverns fell by 16.8% to 126p, while Enterprise Inns by 16.7% to 102½p. Marston’s was down 3.2% at 142p, while Greene King fell by 4.5% to 750½p. Spirit Pub Company dropped 6% to 101½p amid fears that its proposed takeover by Greene King could be thrown into doubt.
Billingham said that he was “surprised and disappointed”, but it was “not the end of the road. We’ll review whether there is a legal recourse, but for now we’d prefer to let the parliamentary process run its course through the Lords”.
