FSA reportedly probes trading in pub shares

LONDON (Reuters) - The Financial Services Authority is probing potential insider dealing in the shares of pub companies Punch Taverns <PUB.L> and Enterprise Inns <ETI.L>, the Daily Telegraph reported without citing sources.

The Telegraph said the FSA was scrutinising falls in the share price of both companies on May 12, the day before publication of a report by MPs calling for the competition regulator to probe an aspect of their business model.

The report by the Business and Enterprise Select Committee said the so-called "beer tie" -- under which pub tenants are forced to buy beer exclusively from their landlords -- should be looked at the by the Competition Commission.

An FSA spokeswoman declined to comment. No one was immediately available at Punch Taverns and Enterprise Inns.

(Reporting by Myles Neligan; Editing by Steve Orlofsky)

Article Published: 17/05/2009