Dubai-based Landmark Group, headed by retail guru Micky Jagtiani, has edged up its stake in Debenhams to 8 per cent in a move that will further fuel speculation that it is to bid for the retailer.

Shares in Debenhams rose 0.5p – 0.81 per cent – following the news that Landmark's investment vehicle Milestone Resources upped its stake from the 7.3 per cent it acquired in December.

The move comes at the same time as Baugur becomes able to make an offer for the department store chain, following a six-month exclusion period. The Icelandic investor ruled itself out of any bid process for six months in July under Takeover Panel rules.

Jagtiani said before Christmas that he would be prepared to launch a joint bid for the department store if approached, in a move first reported by Retail Week (December 21). Landmark has teamed up with Baugur to launch a potential joint bid for US department store chain Saks.

Jagtiani has also been linked to other UK retail takeovers, including the failed sale of New Look and a bid for Debenhams before it was taken private.

Shares in Debenhams have almost halved since it refloated in 2005 and it has issued a string of profit warnings. It will update the City on Christmas trading on Tuesday.

Topics