SHAREHOLDERS in Revolution Bars look to have rejected a takeover bid from rival operator Stonegate after management had rebuffed a merger proposal from former Rangers’ chief executive Bob Brannan’s Deltic Group.

Revolution informed the stock exchange that just 54.7 per cent of proxy votes were in favour of the £101.5 million offer by Stonegate, which operates the Slug & Lettuce and Walkabouts chains.

Stonegate said it was “considering its options” and a further announcement “will be released in due course”.

The proxy votes represented 52.36 per cent of the outstanding votes, meaning a total of 23.36 per cent of shares voted so far have been against the offer.

The ownership of the bar chain has been the subject of intense speculation since July. Stonegate made an initial cash offer of 203p per share, saying that it had the backing of almost 21 per cent of shares. But that was derailed when Artemis Investment Management, with a 14.77 per cent stake, earlier this month withdrew its support.

Stonegate had faced competition from Deltic Group, where Mr Brannan is chairman. The nightclub operator’s plan to merge the two companies was rebuffed by Revolution management, who told Deltic to make a cash offer, which it did not do ahead of a City deadline.