Directors associated with the Piedmont investment vehicle are set to be ousted from the board of Mitchells and Butlers (M&B) as part of an ongoing feud between the pub group and its largest shareholder.

On 30 November, M&B said it had approached the Panel on Takeovers and Mergers to investigate whether Piedmont was seeking to gain control of the group after one of its representatives took actions that threatened to "undermine the independence and effectiveness of the board". The pub group has "resolved" that Richard McGuire should relinquish his position as a director, as well as Denis Jackson, Ray MacSherry and Douglas E McMahon, while also appointing senior independent director Simon Laffin as its new chair.

Laffin said: "We are moving swiftly and decisively to protect the interests of all shareholders and to maintain a sharp focus on operations." In a statement, however, Piedmont rebuffed the allegations. A spokesperson said: "Piedmont notes that with two representatives on a Board of eleven, it was never in a position to veto any decision of the board. Furthermore, Piedmont never requested the resignation of the senior independent director, Simon Laffin."

"Piedmont is a long term investor in Mitchells & Butlers and has always striven through its representation on the Board to deliver greater company accountability, transparency and value on behalf of all shareholders." Meanwhile, M&B - operator of the All Bar One and O'Neill's chains - confirmed that it had offloaded seven Scottish pubs to Greene King in a £12.7m deal.