Middle Eastern retail giant Landmark has taken a 7 per cent stake in UK department store chain Debenhams through investment vehicle Milestone, raising speculation that a bid for the UK store group may be in the offing.

The disclosure of stakebuilding by Landmark, which is interested in linking up with Icelandic investor Baugur to take over US department store group Saks, follows Retail Week’sstory on Friday that a bid for Debenhams is likely early next year, fronted by a foreign retailer in partnership with Baugur.

Today's share buying by Landmark was, however, understood to be an entirely independent move. Baugur is prevented by Takeover Panel rules from staging a bid for Debenhams before next month.

Landmark is keen to build its international presence and earlier this year was interested in bidding for control of private equity-backed fashion retailer New Look.

Debenhams declined to comment.

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