Café Rouge owner Tragus has lost the race to secure tapas chain La Tasca.
In a statement today La Tasca's board said given Tagus's decision not to increase its 192p per share bid for the company yesterday, it would be supporting the higher rival bid.
La Tasca said: "The board of the company has considered its position and consequently withdrawn its recommendation. The implementation agreement with Tragus has therefore also been terminated."
Property magnate Robert Tchenguiz upped the stakes in the bidding war for La Tasca with a 200p per share bid yesterday (4 April), made through his investment vehicle R20 in concert with Icelandic bank Kaupthing.
It values the company, which has 58-restaurnats in the UK and four in the USA at £104.2m.
Tragus initially started the bidding war by tabling an offer of 185p per share for the company at the end of March.
This valued the company at £96m and won approval from La Tasca's board members.
Tragus, which currently holds a 6.88% stake in La Tasca, is in line for compensation of £958,000, called an inducement fee, now its previously recommended offer has been ditched.
By Chris Druce
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