Luke Johnson, the chairman of restaurant chain Belgo and director of various internet companies, last night refused to comment on speculation that he is planning a bid for the Waterstone's chain of bookstores.

Mr Johnson, who is looking at expanding his business interests, would not comment on the latest rumours. "I am sorry I am on holiday and cannot speak to you," he said.

Son of the newspaper polemicist Paul Johnson, he last week bought into GlobalNet Financial through NewMedia Spark, where he is a director. Earlier he had been forced to withdraw from plans to participate with Morgan Grenfell in the purchase of 3,000 public houses from Whitbread.

This latest move by Mr Johnson, the former co-founder of PizzaExpress, follows reports that HMV Media, the owner of Waterstone's, has been in new discussions with Bertelsmann, which owns the BOL online book business, and Borders, which controls the Books etc chain.

Bertelsmann and Borders had fruitless talks with HMV last year. More recently HMV has been involved in negotiations with Ottakar's, the books retailer, and with former owner Tim Waterstone both of which have come to nothing.

HMV Media, formed in 1998 through the purchase of Waterstone's from WH Smith and the HMV music stores from EMI, wants to sell the books business to reduce its £500m debts. It has turned down offers of £200m and re-negotiated its financing agreements with its banks, led by UBS Warburg and Merrill Lynch.

Waterstone's opened its first bookshop in Old Brompton Road, London, in 1982. It has outlets in more than 220 different locations in Britain, Ireland and Europe, and sells an increasing amount of its stock through a well organised internet site.