Revolution Bars Group PLC and Nightcap PLC have both confirmed talks are being held about a possible takeover of the struggling hospitality group.
An all-share offer from Nighcap is one of the options being explored among other deals Revolution said on Thursday in response to speculation over the potential deal.
Responding to Revolution's announcement, Nightcap said the acquisition of certain sites, subsidiaries, brands and even the whole business was under consideration.
"The board of Nightcap has been following events at Revolution Bars over the past few weeks," the company said.
"Nightcap's evaluation of the options is at a relatively early stage," it added, noting no firm offer had yet been made.
This is not part of Revolution’s formal sales process, unveiled in early April, the struggling bar operator added, with Nightcap having until May 30 to table an offer.
Sky News had reported on Wednesday that Piano Works-owner Nightcap was eyeing parts of or all of Revolution, alongside another operator Rekom.
This is after Revolution said commitments had been received from investors under a £12.5 million fundraise aimed at keeping the bar chain afloat as it undergoes a restructuring.
Shares in Revolution were previously suspended, while the company announced eight sites would be closed in January as higher costs and muted consumer spending hit.
Further sites could be closed under the restructuring plan, representing a quarter of Revolution’s 80 venues, with a sale of the business being explored alongside this.
Updated with Nightcap comments