BOLTON-based Spanish tapas bar chain La Tasca could soon be owned by a Spanish restaurant company.

But an Iraqi property tycoon who bought Yates Group, the former Bolton pub and bar chain for £202 million, is also in the running.

Grupo Zena, a Madrid restaurant company controlled by CVC Capital Partners, is understood to have entered the race to buy the AIM-listed casual dining company, which has its headquarters on Princess Street, Bolton.

Grupo Zena, whose brands include the Cañas y Tapas chain, is one of three bidders vying for La Tasca.

The others are Tragus, the owner of the Café Rouge and Bella Italia chains, which is controlled by Blackstone Group, and Kaupthing, the Icelandic bank working in tandem with Robert Tchenguiz's R20 investment vehicle.

Mr Tchenguiz bought Yates Group for £202 million in 2005.

The company said: "We are in preliminary discussions, which may or may not lead to an offer being made for the entire issued and to-be-issued share capital of the company.

"Further announcements will be made in due course."

La Tasca is valued at about £83 million, or £102 million including debt.

New York private equity firm Blackstone Group is understood to have made an approach to take over La Tasca.

The company has appointed PricewaterhouseCoopers to help examine options ranging from an outright sale, merger or management buy-out to trimming its estate of 70 restaurants or continuing with its present strategy.

Shares of La Tasca enjoyed a strong start after floating on the Alternative Investment Market at 110p two years ago, jumping to 147p, but have suffered considerable volatility in recent months.

They fell to 120p at the end of August after the group suffered a trading dip during the World Cup, only to recover strongly later in the year.

As well as its core La Tasca brand, which accounts for 60 of its 70 outlets, the group has seven La Viña outlets and three grill and smokehouse eateries, Sam & Maxie's.

Grupo Zena has more than 400 restaurants across southern Europe, of which about two thirds are owned and the rest franchised.

Its brands include Foster's Hollywood, an American diner, while it is one of the biggest European franchisees of Burger King, Pizza Hut and KFC.