Mr Lang warned that fostering domestic competition would take precedence over the creation of "national champions" in what was being seen last night as an abrupt change in tack from that of his predecesor, Michael Heseltine. The shift in policy could scupper Bass's pounds 500m takeover of rival brewer Carlsberg Tetley - a merger that would give it 40 per cent of the beer market.A bid for car components and aerospace group Lucas Industries from suitors such as TI or T&N could also run into trouble. The funds will be used to reduce Inntrepreneur's debts as well as to fund further investment.Inntrepreneur's chief executive Mike Foster said: "Since IPCL became an independently managed business, it has become increasingly clear that the current size and the geographical spread of our estate will limit our ability to ensure focused use of our resources.". A series of mega-bids in industries ranging from brewing and financial services to engineering and privatised utilities could be jeopardised by the marked shift in competition policy outlined yesterday by Ian Lang, President of the Board of Trade. Reducing the estate would enable investment and time to be more accurately targeted. Many of the pubs are in East Anglia, rural Kent and Cornwall or in towns and cities where the company feels it has too many outlets.The company said the Spring Inns deal was not being backed by Inntrepreneur but by bank funding.It is seeking a single buyer for all 1,410 pubs but if no buyer can be found for the entire estate, then it will consider selling individual pubs to existing occupants.

It said the group had more pubs than could be effectively managed. Inntrepreneur would dearly love to sell the pubs but it can't find a deal at anything like their book value. This deal is just a financial hotchpotch."Mr Cairns, who represents the Bristol Licensed Victuallers Association also said fear of litigation might be another factor.He said Inntrepreneur was already facing many cases brought by frustrated leaseholders. Though these cases will remain with Inntrepreneur, any new litigation would now be brought against the new company.He added that the deal would make little difference to leaseholders, who would be in the same pub, paying the same rent with a tie to buy the same beer.Inntrepreneur denied that the deal was a ring-fencing attempt.

Inntrepreneur, the ill-starred pubs group jointly owned by Grand Metropolitan and Fosters Brewing, is selling 1,410 of its 4,500 pubs for pounds 262m. It is placing the pubs with a newly created company, Spring Inns, but hopes to sell them on to a third party. Angry Inntrepreneur licensees, who have been fighting the company over what they perceive as unfair rent levels, were hostile to the deal, saying it was little more than a refinancing that would also help protect Inntrepreneur from pending litigation over the leases.Nigel Cairns, who runs the Wheatsheaf pub in Bristol said: "Its really just a refinancing package. But after a recent appraisal, an expert has identified it as a previously unknown work by the Dutch abstract pioneer Piet Mondriaan, the Mondriaan House museum announced. "Mondriaan wasn't famous for painting flowers, so they didn't know for sure it was painted by him," said museum spokeswoman Liesbeth van den Donk. The watercolour Blue Chrysanthemum which shows the blossoming flower against an orange background, was probably executed by Mondriaan between 1922 and 1924 when the artist lived in Paris, said Ms van den Donk AP. Amersfoort, Netherlands - For more than half-a-century, the Dutch family didn't pay much attention to the signature P Mondriaan at the bottom of their floral watercolour.