MULTI-MILLIONAIRE Duncan Bannatyne is considering a stock market flotation of his hotel and health club business, it emerged last night.

The entrepreneur and reality TV show star said a flotation was an option - although he had not gone so far as to appoint advisors.

A stock exchange float of the Darlington-based group could net Mr Bannatyne a fortune of up to £165m.

However, it is understood he would retain a large number of shares if he were to go ahead.

Reports in the national Press suggested Bannatyne Fitness was the subject of a takeover approach from a London-based company, Energie Fitness, for up to £120m.

But Mr Bannatyne rejected the offer, on the grounds it was too low.

His spokesman said last night: "The business is not under offer at the moment.

"The reports in the national Press about a float are speculative, but it is a direction that could be considered in the future.

"Duncan made a very great success of the company float with Quality Care Homes, so he does understand how to do that and how to use the public offering as a way of delivering value to the business.

"The business is very profitable, making £6.5m last year, which is a reason that there is always speculation over its future."

A listing is believed to be planned for the next four to six months.

Bannatyne Fitness has almost 40 fitness clubs nationwide, the first of which opened in the region in 1997.

The company also runs Hotel Bannatyne, previously the New Grange Hotel, in Darlington, and has permission to build a 50-bed hotel in Durham. And the group runs a casino in Newcastle, which opened last year.

Since the opening of the first club in Ingleby Barwick, near Stockton, eight years ago, Bannatyne Fitness has become the UK's largest independent health club operator, with about 100,000 members.

Mr Bannatyne appears on the BBC2 programme Dragons' Den.

His first business was an ice cream van, which he bought at an auction and started Duncan's Super Ices.

He sold the company for £20,000 and entered the care home business, netting £46m, and then in the late 1990s, he established Bannatyne Fitness.