House of Fraser has declined to comment on reports it is in advanced discussions with French department store group Galeries Lafayette over an acquisition of the UK department store retailer.
Two industry sources told Reuters there are currently "talks between the two companies". It is understood Galeries Lafayette has exclusivity until the end of January.
A spokesperson for House of Fraser, however, declined to comment, while Galeries Lafayette could not be reached for comment.
The talks follow reports in August the British retailer was considering a return to the stock market after seven years under private ownership. Such a move could value the group at GBP350m (US$572.6m), according to the Financial Times.
In its first-half results published in September, the firm reported flat earnings and like-for-like sales growth of 1.1%.
Ownership of the department chain is made up of a 49% holding by Highland Group Holdings owned by Icelandic banks Landesbanki and Glitnir, and 20% by chairman Don McCarthy. Of the remaining share, retail entrepreneurs Tom Hunter and Kevin Stanford own 11% and 9% respectively, while Lloyds Banking Group has 5% and other management 6%, according to Reuters.
