City Centre in merger talks with Ask

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City Centre Restaurants has confirmed it is considering a merger with pizza chain Ask Central.

If successful, the new company would have more than 300 restaurants and would give City Centre a greater high-street presence.

Its most successful brand Frankie and Benny's is mainly concentrated in retail parks and airports, although the company does have a high-street presence with other brands such as Est Est Est.

In a statement City Centre Restaurants said that there would be greater flexibility across the combined group for "re-branding and restructuring sites where beneficial".

Ask, which has no debt, is expected to be valued at around £171m. Adam and Samuel Kaye, the founders of Ask, hold £3.45m worth of shares. A deal with City Centre Restaurants could give them a £20m windfall.

A spokesman for Ask said that discussions were at a preliminary stage and there was no certainty that agreement would be reached.

by Christina Golding

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