Embattled pub group Punch Taverns saw its £375m investor cash call scrape through today after nearly 40 million votes were lodged against the move.

Marstons, the listed pubs group that is looking to tap investors for £176m, is facing a rebellion from leading shareholders over a rights issue some have dubbed "totally ridiculous".

Punch Taverns, the debt-laden pub operator, has ended months of speculation by unveiling a £375m fundraising to reduce its debt mountain and meet a critical bond repayment next year, but it warned of continuing tough trading in the sector.

MPs called today for an urgent competition investigation into the pub industry amid fears that ties between pub firms and licensees were forcing up prices for drinkers.

MPs are expected to start a shake-up of the UK's struggling pub sector when the influential Business and Enterprise Committee publishes its report Pub Company Power on Wednesday.

Performance at the Premier Inn budget hotel chain is likely to be in focus when Whitbread, the FTSE 100- listed hospitality group, posts its preliminary results tomorrow. Until recently, demand for cheaper hotel rooms has kept Premier safe from the sharp economic headwinds that are blowing across these isles. But the picture showed signs of unravelling in March, when a trading statement revealed that lower occupancy rates at the budget business had begun to drag on group like-for-like sales.

Pubs chain Geronimo Inns has secured £10m in funding from its private equity and banking backers to buy six London pubs from Punch Taverns.

Yule Catto, the chemical group, is the latest UK company to scrap its dividend in the face of economic uncertainty and the need to conserve cash.

Home Retail Group, the owner of the Homebase home improvement chain, slumped to the bottom of the Footsie last night as the retail sector turned lower amid growing concern about the impact of the flood of discounts on the high street.

Punch Taverns closed down more than 15 per cent after it was suggested that a sharp fall in profits and the resulting covenant breaches might trigger a major restructuring that could leave the stock, worth 106.25p last night, trading at 10p.