A BIDDING war looks set to break out for Inventive Leisure, owner of the Revolution vodka bar chain, after it emerged yesterday that the company had received a bid approach.

The Times understands that the putative bid, in which the unnamed private equity firm would back the current management, has sparked interest from Ultimate Leisure, the Newcastle-based bar and club operator, and Regent Inns, the group behind the Jongleurs and Walkabout chains.

Mark Jones and Colin Rowlinson, the former Yates Group directors parachuted in to run Ultimate three weeks ago, have a combined personal stake in Inventive of about 3.5 per cent. Mr Jones said: “We’re watching the situation at Inventive with interest.”

Regent Inns is tipped as another potential bidder after it was recently rebuffed in its attempts to buy Urbium, the London-based bar operator.

Analysts pointed to Isis Equity Partners and TDR Capital, the private equity firms, as potential suitors while Electra Partners, which is in exclusive talks to buy Urbium, was also mooted.

Shares in Inventive jumped 18½p to 141½p, valuing the company at £33.7 million, or £42.3 million including debt, although analysts believe bidders will have to offer as much as 170p a share.

Inventive said in a statement accompanying its full-year results that it had received “a preliminary indicative approach from a private equity house”, and that talks were at “an extremely early stage”.

It said that because of the involvement of management, who own a combined 41 per cent holding, the bid would be considered by John Green and Nick Stagg, the non-executive directors.

In the year to June 30, Inventive showed a further recovery from its travails of last year. Pre-tax profits increased 45 per cent to £3.6 million from turnover that was 7.8 per cent higher at £44.9 million. The final dividend of 2p makes a total of 2.8p (2.1p).

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