The offer for Yates is expected on Wednesday

The company has revealed that it is in advanced talks over the buyout, which is being backed by private equity fund GI Partners.

If the �93m offer is forthcoming, it represents a 42% premium on the firm's average stock price over the past year.

The offer for Yates expected to be announced on Wednesday, when Yates reports its full-year results.

Planned de-listing?

The group, which owns two bar chains, Yates and the smaller Ha! Ha!, said in March that it expects to announce pre-tax profits at the top end of expectations, after a return to positive sales growth from the start of the 2004 calendar year.

GI Partners believes it is backing a very strong management team which together can develop the business over the long term GI Partners Yates' share price

The group's share price was up 4.6% to 136p following the announcement.

GI Partners said that the management buyout team wish eventually to take the company private.

"GI Partners believes it is backing a very strong management team which together can develop the business over the long term away from the pressures of the stock market," said a spokeswoman for GI Partners.