Entrepreneur Stelios Haji-Ioannou has said he is considering a bid for the Coffee Republic chain.

Mr Haji-Ioannou's Easy Group, an investment company set up to extend the brand made famous by Easyjet, is the latest in a series of firm's to be linked with the coffee bar firm.

Coffee Republic admitted earlier this month that it had received a takeover offer, prompting speculation that rival group Caffe Nero and sandwich bar chain Benjys were potential buyers.

But Mr Haji-Ioannou is reportedly not interested in the coffee brand.

The company said on Thursday that it wanted to turn the chain of 100 bars into internet cafes.

Easy coffee?

Easy Group said on Thursday that its approach was still at a very early stage and it could give no details on price.

"We're not in a position to make any kind of bid at the moment because we don't have all the information on what the property portfolio is actually worth," said a spokesperson for the group.

Coffee Republic has seen more than 80% wiped off the value of its shares since the start of 2001, as competition in the sector increased and the company lost key management.

Earlier this month, the group admitted it had been approached about a possible takeover after its shares jumped 38% on stake building by Caffe Nero.

The rival company now owns a 10.7% stake in Coffee Republic.

Neither Caffe Nero or Benjys have commented on the media speculation of their interest.

There were some signs of Easy Group's interest.

In June, Caffe Nero signed a deal to supply coffee to web users at Easyinternet's flagship outlet in Kensington. At the time, there was talk of possible further tie-ups following successful trials.

Bitter coffee market

Analysts have welcomed news of a possible bid and say a buyer would be likely to get market support for consolidating the struggling coffee bar market.

The four key players in the UK market are currently US group Starbucks, Costa - owned by Whitbread, Caffe Nero and Coffee Republic.

But for over a year, analysts have suggested there was room for only three players in what is becoming a saturated market.

Shares in Coffee Republic were unchanged at 4p on news of the latest interest, but have jumped over 50% since takeover talk began in early August.

At the beginning of 2001, when the sector was enjoying a caffeine high, shares hit over 30p.