Restaurant chain PizzaExpress says it has received a £237 million-£251 million sterling bid approach.
The news lifted shares in the chain that is being squeezed by competition in the value restaurant market.
PizzaExpress, which also owns the Cafe Pasta and Milano's brands, said the bid approach was worth 330-350p per share. It may or may not lead to an offer for the firm, it said in a statement today.
The company had denied talk of a management buyout or bid, but its shares rose in mid-October on speculation that hotels and leisure group Whitbread might launch a takeover.
PizzaExpress stock has fallen over 60 per cent this year, showing the strain of falling sales at its restaurants, which are suffering from the economic insecurity of its target customers - media and financial workers - and a drop in London tourism following the September 11th attacks on the United States.
PizzaExpress aims to capture a middle market between fast food and formal dining, but it faces competition from chains such as Pizza Hut, Bella Pasta and Caffe Uno.