Tiger Tiger bar owner Urbium has confirmed that it had rejected a surprise takeover approach from rival Regent Inns.
Urbium said it rebutted the proposal because it was too low and because there were major differences between the two businesses.
It was the first time Urbium had confirmed that the owner of Walkabout bars and the Jongleurs comedy chain had made an approach.
It is thought Regent was prepared to offer around £83 million.
Urbium said: "The board of Urbium is strongly of the view that there is little strategic fit between the two very different businesses.
"Accordingly the proposal was rejected." The Londonbased group has 29 UK outlets, including eight Tiger Tiger bars at locations including Glasgow, Manchester, Leeds and Newcastle, as well as one-off bars such as London's Sugar Reef and Birmingham's Digress in Newhall Street.
Tiger Tiger's bars also host corporate events.
Regent has 48 Australian themed Walkabout bars - including an outlet in Broad Street, Birmingham - which specialise in broadcasting international football and rugby matches, as well as 17 Jongleurs comedy clubs.
Urbium chairman John Conlan said Urbium was well advanced in its strategy to grow under the leadership of recently-appointed chief executive Steve Richards.
He said: "The board believes that Urbium is a strong company and well-positioned for future growth." Urbium also rejected the proposal on the grounds that it was mainly shares-based.
It said earlier this year that a strong performance by its West End bars and the rapid expansion of its City of London operations helped annual profits rise by 18 per cent to £11 million.
Analyst Richard Carter at stockbroker Numis Securities said: "Although Urbium has turned down Regent's initial approach, at the current low valuation we think Urbium will continue to attract bid interest."
He said the success of the London late-night market and the company's growth prospects underlined its attractions.