Prezzo Shares Tumble from Gains as Restaurant Chain Confirms 'Unlikely' £300m Sale

Prezzo shares are trading to the upside in the late afternoon trading session, but have fallen from the near 10% high point of the day, after press reports speculated that the Italian restaurant chain was selling the business for £300m.

Although the Prezzo stock price eased off major gains of the day, it was still trading up near 3% at 138.75p as of 1456 BST.

Prezzo's board confirmed in a statement that "it has received preliminary proposals from Advent International and TPG Capital in relation to a possible offer for the company.

"Indications are that any offer is unlikely to be at a premium to the share price at the close of business on 1 October 2014 of 135 pence per Ordinary Share.

"Following this announcement, the company is now considered to be in an "offer period" as defined in the City Code on Takeovers and Mergers, and the dealing disclosure requirements listed below will apply.

"This announcement is not an announcement of a firm intention to make an offer under Rule 2.7 of the Code and there can be no certainty that an offer will be made, nor as to the terms on which any offer will be made."

Prezzo operates almost 250 Italian restaurants across the UK branches across the UK and floated on the mid-cap London market in 2002.