A group looking to buy the listed Gresham hotels group has won more time to table a formal bid.

The consortium, comprising property developer Mr Bryan Cullen, who owns Jackson Homes; Dublin solicitor Mr David Coleman of Lavelle Coleman; and builder Mr JJ Murphy, has indicated it is prepared to pay €1.35 a share for the hotel group, a 12.5 per cent premium to last night's closing price.

The Irish Takeover Panel had set yesterday as the deadline for the group, fronted by Deloitte Corporate Finance, to make a bid or walk away.

However, the panel has allowed a one-week extension following a request from the consortium, which was supported by the board of Gresham.

This is the second extension granted by the panel since news of the approach was first revealed just before Christmas. Both sides told the panel that discussions regarding the consortium's €107 million offer were ongoing but that the parties had still not agreed the terms of a deal.

It is understood that no formal discussion has taken place between the consortium and Gresham's biggest shareholder, the Red Sea group, which has a blocking 28 per cent interest.