Tension mounts as PizzaExpress awaits new bids

The future ownership of high-street pizza restaurant chain PizzaExpress hangs in the balance this week as company investors wait to see whether a bid of 387p a share from Nando's operator Capricorn Ventures and private equity firm TDR is trumped by a higher bid from former chairman Luke Johnson.

Through bidding vehicle Venice Bidder, Johnson said he intended to top the Gondola Express offer, the bidding vehicle formed by TDR and Capricorn Ventures, the South African company that owns 47% of Nando's.

Gondola's bid was 21p a share higher than Venice Bidder's offer, which was made in February and rejected by shareholders.

While PizzaExpress chairman Nigel Colne said he would welcome a new bid, chief executive David Page is reported to be less than happy at the prospect of Johnson's renewed involvement with the group. However, a spokeswoman for PizzaExpress said the decision on which offer to accept was purely down to cash.

Gondola Express executives decliined to comment on whether it would increase its offer should Johnson come in with a new bid.

Should the offer be accepted, the directors intend to end the company's growth period and enter a period of "consolidation", but insists there are no plans for a merger or restaurant closures. A spokesman said: "There will be no selling-off of assets and no merger with Nando's, but there will be a huge transfer of management experience from Nando's to PizzaExpress."