Topshop owner eyes Baugur

Topshop-owner Sir Philip Green is in talks with Icelandic government officials about investing up to £2bn in Baugur, the retailing group which includes House of Fraser, Karen Millen and Hamleys. Baugur has seen part of its assets frozen in the fallout from the Icelandic banking crisis and Sir Philip, who has steered clear of equity markets and kept his assets safe, could emerge from the UK's economic slowdown with some of the Icelandic group's stores.

Sir Philip arrived in Reykjavik on a private jet with Jon Asgeir Johannesson, the chairman of Baugur, looking to win as large a share as possible of the group's British brands.

www.baugur.com