A consortium led by Icelandic retail investment group Baugur is considering a $3bn (£1.4bn) offer for American department store group Saks. The Times

Saks owns 54 stores in 25 US states, including its flagship in New York’s Fifth Avenue.

Baugur chief executive Gunnar Sigurdsson and director Don McCarthy have met the Saks management team in the US and have been examining the group’s portfolio. It would be its first takeover of an American company.

The consortium is thought to include Sir Tom Hunter.