City watchdogs have rejected claims by managed pub operator Mitchells & Butlers (M&B) that certain shareholders were acting together - or "in concert" - to take over the company.
In a statement the Takeover Panel said "no agreement or understanding was reached between those shareholders to act in concert for the purposes of the City Code on Takeovers and Mergers and, accordingly no breach of the Code has occurred.
"All shareholders, therefore, remain free to exercise the rights attaching to their existing shareholding in full, for the purposes of the forthcoming annual general meeting, or otherwise".
Both sides of the dispute had accepted the findings of the Panel, it said.
The Panel has been examining since the end of November claims lodged by M&B that un-named shareholders had "been seeking to gain control of the board and of the company to advance the interests of a small group of shareholders at the expense of others", according to M&B.
M&B is embroiled in a bitter row with Piedmont Inc., the investment vehicle owned by Joe Lewis, who owns around 23 per cent of the company's shares.
Piedmont and M&B have fallen out over nominations to the managed pub operator's board, with open letters to shareholders from both sides accusing the other of causing the row to continue.
M&B meanwhile announced that it was hosting an analyst seminar next Thursday (January 21).
In a statement M&B said the group's chief executive Adam Fowle will talk about "current industry dynamics" as well as its position in the market.
One analyst said it would also be an opportunity for M&B to press its case against Piedmont and others.
In a further twist, M&B announced it had been approached to see if a new proposal could be added to the agenda for the group's AGM, which takes place on January 28.
Elpida, the financial group which owns around 21 per cent of M&B's stock, apparently wants to appoint Ray MacSharry to the board.
MacSharry was previously nominated by Piedmont at the request of Leo Fund, a London-based hedge fund which at the time held around five per cent of M&B.
He joined the M&B board in August of last year but was one of four board directors to leave the group in December in a row over management strategy.