Leading analyst Nigel Parsons, of Canaccord, has said Revolution Bars Group chairman Keith Edelman should “make that call” to the Deltic Group.

Parsons upgraded Revolution from Hold to Buy and increased the target price to 230p from 203p but said the company needs to prove it is performing well or start merger talks with Deltic.

He said: “RBG’s share price has fallen following shareholder rejection of Stonegate’s offer and is now c.20% below its 203p/share cash offer price and 25% below its recent high point. Stonegate has now departed saying it will not be returning. Deltic remains interested in a merger but is barred for six months from making an approach under Takeover Panel rules. RBG’s board may wish for an independent future, but it has no CEO and any further slip-up would destroy its negotiating hand in subsequent talks, in our view. RBG chairman, Keith Edelman should make that call.”

Parsons said that post-merger, assuming combined £40m of EBITDA in FY19E, combined net debt of£35m, an enlarged share count of 75m shares and an EV/EBITDA multiple of 8.0x, the enlarged group could generate a share price of 392p.