Spanish theme bar and restaurant group La Tasca, which earlier this week was considering a £96 million cash offer from the Tragus Group, is now reeling from a surprising new offer.

A bid vehicle called TFT, which consists of Iranian entrepreneur Robert Tchenguiz and Icelandic bank Kaupthing, has trumped Tragus' offer with an £98.6 million bid.

The new bid would see La Tasca shareholders receive 188p in cash per share, up from the 185p per share offer from Tragus.

AIM-listed La Tasca, which has its headquarters in Greater Manchester, has said it is considering its position. However, Tragus has declined to comment.

La Tasca chief executive James Horler told the Manchester Evening News: "This changes things a little. We'll obviously sit down and have a look at the new bid. It shows the appetite for the business and our sector.

"We'll continue to do what is right for shareholders in terms of value, deliverability and certainty."

La Tasca operates tapas bars and restaurants in the UK and US and employs around 350 people in Greater Manchester.