Yates bidder threatens to walk

THE venture capitalist bidding £94m for bars group Yates today warned investors it may walk away if they do not accept soon.

GI Partners has given investors just seven days to accept - half the usual timescale at this stage - showing its impatience after weeks of speculation that a second bidder might emerge.

Meanwhile, the Evening Standard has learned that GI has held tentative talks with other High Street bar operators. The revelations will further fuel speculation that it is getting cold feet over Yates.

Although GI refused to comment, venture capital sources said preliminary approaches had been made to the Laurel Pub Company for its High Street bars, and Spirit Group - both of which are owned by private equity groups. Laurel's bars, including Hog's Head, are likely to fetch £120m to £140m.

Chief among the parties causing speculation of a counterbidder for Yates has been Commerzbank, which appears to be betting a higher offer will emerge. It has bought a

12.3% stake, taking the shares above the 140p offered by GI.

Hopes of a better offer were further stirred when Laurel disclosed it was looking at Yates' books. It later walked away.

Only 16.7% of shareholders have accepted GI's offer.

Nearly half of the individual shareholders have agreed, but Commerzbank and several other big investors, including the founding Dickson family which accounts for 30%, have not.