Pub group Mitchells and Butlers (M&B) has been unsuccessful in its complaint to the Takeover Panel that a number of shareholders were acting in concert to take control of the company.

The Takeover Panel was asked to investigate the claims on 30 November 2009, but has ruled there was no agreement between the shareholders concerned before 15 October 2009 that would breach the City Code on Takeovers and Mergers. In its ruling, the panel said: "The panel has concluded that, prior to 15 October 2009, the time when the last relevant purchase of shares was made, no agreement or understanding was reached between those shareholders to act in concert for the purposes of the code and, accordingly, that no breach of the code has occurred."

A spokesperson for M&B said: "The company reluctantly accepts the Takeover Panel's position. It however continues firmly to believe that certain shareholders are using their rights in a manner which may have an adverse effect on control of the company." M&B has also asked the panel to continue its investigation to examine activity since 15 October 2009 amid an ongoing row with the Piedmont investment vehicle, which is the company's largest shareholder.

In December 2009, four directors with the Joe Lewis-led vehicle were removed from the board of the pub group "to protect the interests of all shareholders and to maintain a sharp focus on operation". A open letter to shareholders from Piedmont on 12 January accused the M&B board of presenting "a highly partial, misleading and prejudicial account of events" since it submitted the complaint to the Takeover Panel.

Piedmont's letter came in response to one sent to shareholders on 11 January from M&B, urging its recommendations for the composition of the board to be adopted in preference to alternative proposals put forward by Piedmont. According to M&B, "should Piedmont's proposed resolutions be passed, Piedmont would effectively have determined the composition of a majority of the board in nominating five directors and in trying to remove both the previous and current chair."

However, Piedmont responded: To suggest, as M&B did in its letter of 11 January, that these individuals are not in fact independent and would serve Piedmont is not only totally false, it is an insult to the reputation of the candidates themselves and completely misleading to the shareholders of the company."