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In a nutshell, Simon's apparently got a bee up his nightgown over Pete taking part as a faux judge in Brit comedian Peter Kay's Britain's Got the Pop Factor ... and Possibly a New Celebrity Jesus Christ Soapstar Superstar Strictly on Ice last month.
The TV special's resulting single, "The Winner's Song" by Kay-as-trannie Geraldine, debuted at #2 on the U.K. a few week's back, keeping Leon Jackson's "Don't Call This Love" held at #3.
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Meanwhile, Simon previously had Pete and Mike Stock work with last year's X Factor runner-ups Same Difference on a cover of Kylie Minogue's "Turn It Into Love," which is set to appear on their December 1 debut album Pop.
You don't need him, anyway, Pete. Now get to work putting Steps back together!