Park Place Capital, the majority shareholder in Signature Restaurants has said it will not accept the takeover bid by chairman Luke Johnson.

Johnson recently announced that Pinco, the company set up to bid for Signature on his behalf, now owns or controls 46.5 per cent of Signature shares.

Johnson and chief executive, Andy Bassadone, are also entitled to exercise warrants which would give them 9 per cent of the enlarged share capital, but although this would give the MBO team more than 50 per cent of the shares, both men have undertaken not to exercise the warrants while the offer for Signature remains open - it has been extended until 29 October.

Park Place, which holds 29.1 per cent of issued shares in Signature, also said that it is still considering a rival offer which will be announced on or before 20 November - provided the Pinco offer has not lapsed or a third party announced an intention to make an offer.