The setback comes just days after CVC and Cinven, also on the shortlist, dissolved their partnership. CVC has instead joined the Spirit consortium, the third shortlisted bidder, in which it already has a 15% shareholding.

It leaves Spirit, which includes Texas Pacific Group and Blackstone, in pole position to meet today's final deadline. The sale would be one of the largest deals in the UK pubs sector, which has undergone more than a decade of restructuring since Margaret Thatcher's Conservative government forced brewers to sell off vast numbers of pubs to stimulate competition.

Scottish & Newcastle has offered Spirit, Nomura and Laurel now acting independently about £1,5m each to remain in the auction, though it is unclear whether they have accepted. All three are thought to have asked for more.

Laurel and Nomura cut their ties late last week after they were unable to agree on terms over the financing of their joint bid.

The disarray in the bidding process has led other parties, which did not make the shortlist, to re-express their interest.