Italian high street restaurant chain Prezzo yesterday confirmed that it had received preliminary proposals for a potential takeover offer.
Although Prezzo cautioned that any deal was unlikely to be at a premium to its closing price on Wednesday of 135p per share, or around £316m.
Shares in Prezzo yesterday jumped as much as 11 per cent before paring earlier gains to close down 0.4 per cent at 134.5p.
Prezzo confirmed it had received preliminary proposals from private equity investment firms Advent International and TPG Capital.
As a result, it is now under an offer period under UK takeover code, and Advent and TPG have until October 30 to either make a firm offer or walk away.
The confirmation follows a report on Sky News that said that Prezzo had appointed investment bank Altium Capital to oversee talks with potential suitors.
The original Sky News report said that Prezzo could fetch around £300m in a sale.
The move follows Tragus Group’s decision to sell its Strada restaurant chain to Hugh Osmond’s Sun Capital Partners earlier this week for £37m.