THE Middle-Eastern property mogul linked to moves to take over the Pubmaster group last night vehemently denied the rumour.

Robert Tchenguiz, joint chairman of the powerful Rotch Group, was reported to be trying to buy a fellow shareholder's stake in the Hartlepool tenanted pub chain.

Mr Tchenguiz, already the major stakeholder in Pubmaster with 37 per cent of the group, was alleged to be in talks about buying a 21 per cent share owned by German bank WestLB.

Douglas Jack, pubs analyst at the bank, said: "I do not think there is much in this to worry the management. This is a private business, it would not be straightforward to buy it."

The company has a system where any shareholder planning to sell their stake would have to inform fellow owners.

Any shares for sale would have to be offered to everyone and could not be sold to outsiders without shareholders being given prior warning.

But even speculation surrounding the story has caused a headache for Pubmaster management which would rather be concentrating on the finishing touches to its bid for Scottish and Newcastle's 1,400 pubs, restaurants and hotels chain.

John Sands, Pubmaster executive chairman, is understood to have spoken to Tchenguiz about the reports.

Mr Tchenguiz last night issued the following statement: "I would like to make it clear that I am not, and have never been, in talks with Goldman Sachs, or any other investment bank regarding any further acquisition of Pubmaster or any additional stake in Pubmaster group such as that owned by WestLB. Nor have I lodged an offer.

"The existence of pre-emption rights applies to all Pubmaster shareholders and, as a shareholder, together with all other shareholders including the management we will decide whether or not to implement our pre-emption rights at the appropriate time."

Mr Tchenguiz was born in Iran, but is Iraqi by heritage - his parents were Iraqi Jews who fled the country in 1948 to avoid persecution.

Along with his brother Vincent, he has amassed a fortune via his Rotch property rental empire.

Among a £4bn portfolio of property, he owns the City headquarters of WestLB at Woolgate Exchange.