House of Fraser said it had received a takeover approach from Icelandic investor Baugur Group and was in talks over a potential 148 pence cash offer per share.

"The process remains at an early stage and there can be no certainty as to whether any formal offer will be forthcoming or the terms of any such offer, if made," the company said in a statement.

The offer values the British retailer at around £349 million.

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