Shares in Pizza Express have fallen steeply after a takeover attempt led by the ailing High Street restaurant chain's former owner Hugh Osmond fell through.

Pizza Express shares closed at 303.5p, down by more than 13% on the day.

The decline came after the company said in a statement that it had been "unable to accept" the terms of Mr Osmond's offer.

Mr Osmond, who co-owned the restaurant chain with former business partner Luke Johnson during the early 1990s, was leading a consortium which was reported to have offered about �250m for the company.

Up and down

Pizza Express was founded in London in the 1960s and enjoyed rapid growth during the next three decades, becoming a firm favourite with investors after it made its stock market debut in 1993.

But changing restaurant fashions and a slump in tourist numbers in the wake of the 11 September attacks have taken their toll on the company's performance, denting profits and curbing sales growth.

Pizza Express shares have lost about two thirds of their value since the beginning of the year.

Wednesday's share price slump has partially erased a steady rise in the company's stock since early October, when Mr Osmond's takeover attempt was first reported.