From the Wall st Journal: --The future of the "tied pub" business model used by the U.K.'s two largest pub companies Punch Taverns PLC and Enterprise Inns PLC was thrown into doubt Wednesday after a scathing report by the U.K's parliament said the model was biased and uncompetitive and recommended regulators launch an urgent investigation.
The U.K. parliament's Business and Enterprise Committee said in a report Wednesday that the current model for tenanted pub groups pushed up prices and was unfair to the landlords that lease its pubs
"We recommend that the Secretary of State refer the matter to the Competition Commission for urgent investigation," it said.
If an investigation is launched - and ends up agreeing with the committee's report - it could see the end of the controversial model used by about a half of the U.K.'s pubs.
Wednesday's news sent shares in Enterprise Inns down 42 pence or 26%, to 118 pence, while Punch Taverns share price slid 18 pence, or 13% to 120 pence.
The committee said that the "tied pub" model, where by pub landlords - or lessees - rent their pubs from pub groups such as Enterprise and Punch and are then forced to buy all of their beer from them - needed to be reviewed again. Marston's PLC and Greene King PLC also run a number of tenanted pubs.
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