Vince Cable questions City panel's powers in Mitchells & Butler row

VINCE Cable, the Lib Dems' treasury spokesman, is today expected to wade into the boardroom row at the pubs giant Mitchells & Butler by signing a House of Commons early day motion expressing "great concern" at an alleged takeover attempt.

The motion – which will be tabled by Labour MP John Grogan, chair of the cross-party Commons beer group – alleges that a number of friends and minority shareholders are trying to seize control of M&B without mounting a formal takeover bid.

The accusations have been made against the "Sandy Lane set" of Barbados-based billionaires who have stakes in the group, led by currency trader Joe Lewis and Irish racehorse owners JP McManus and John Magnier.

Grogan's early day motion comes after Cable wrote to Lord Adair Turner, chairman of the Financial Services Authority, calling on him to examine the powers of the Takeover Panel, the body that regulates City dealings.

Cable questioned whether the Takeover Panel has sufficient powers to investigate "concert party" claims – such as those made at M&B – and whether the standard of proof required by the panel is "excessive".

The politician told a Sunday newspaper: "I am not taking a view on who is right or wrong in this dispute.

"The issue I am raising with the regulator is whether the standard of proof is so high that concert parties could act to the detriment of other investors.

"It is a matter of public policy."

Cable's decision to sign today's motion comes after Friday's decision by the Takeover Panel to reject M&B's claim that the shareholders were working as a concert party.

Piedmont, Lewis's investment vehicle, welcomed the Takeover Panel's ruling and denied that it had sought control over M&B, either on its own or with others.