Paramount - the owner of the Groupe Chez Gérard restaurant business - confirmed last week that it was in talks with executive chairman Guy Naggar that could lead to a buyout worth £28m.
Craftbutton, a company owned by Naggar and business partner Peter Klimt, informed the stockmarket it was in discussions with Paramount that could result in a 35p-a-share bid.
Paramount confirmed that Naggar and Klimt were in talks with the company earlier this year in June.
Craftbutton has a 25% stake in Paramount and has gained support from 40.79% of the company's shareholding. However, this will lapse if an offer is not announced by 26 November.
Paramount has turned the group's fortunes around and is currently testing spin-offs of its Chez Gérard and Bertorelli brands.