TAPAS chain La Tasca was "considering its position" last night, after a bidding war broke out around the Bolton-based restaurant chain.

Iranian entrepreneur Robert Tchenguiz and Icelandic bank Kaupthing tabled a £98.6 million offer for the business yesterday morning, just a day after the La Tasca board recommended a £96 million offer from Cafe Rouge and Bella Italia chain owner Tragus Group.

Mr Tchenguiz, whose investment firm R20 bought Yates Group, the former Bolton-based pub and bar chain for £202 million in 2005, said: "We believe that this offer represents an excellent opportunity for La Tasca shareholders to sell their shares at an attractive price and we look forward to working with La Tasca management and employees in the near future."

Shares in La Tasca jumped at the news of the latest offer, reaching a high of 195p after opening at 183p yesterday.

A statement from La Tasca said: "The board notes the announcement made by Kaupthing. It is considering its position and will make a further announcement in due course."

La Tasca, whose offices are on Princess Street, Bolton, is the leading Spanish restaurant operator in the United Kingdom.

There are 58 La Tasca restaurants in the UK - including one in Bradshawgate - and four in the United States. It also operates eight La Vina wine bars and three Sam & Maxie's Grill and Smokehouse sites.

Previous investments by Kaupthing Bank include Refresco, Huurre, Fram Foods, Alfesca, Booker, Costcutter, Somerfield, the Laurel Pub Company, Bakkavor and Phase Eight.