Sir Philip knocks back Texas offer for Baugur

The private equity firm Texas Pacific tried to approach Sir Philip Green, the retail tycoon, this week about the prospect of working together to buy the debt of Baugur, the beleaguered Icelandic investor. However, the American investor has been told that Mr Green is determined to press ahead with his attempt to snap up the group.

It is understood that Mr Green or a member of his team did not respond to TPG's attempt to discuss how they may work together to buy up to £2bn of debt owed by Baugur to Iceland's collapsed banks. As a result, the two are now rivals in the race to secure the portfolio. Mr Green said: "I am not going to get into who said what or to whom. I get calls all the time." Baugur owns or holds a stake in UK retailers including Hamleys, the toy specialist, and Mosaic Fashions, whose fashion portfolio includes Karen Millen and Coast.

Other private equity firms, Permira and Alchemy Partners, are interested in Baugur, although Blackstone is not. Jon Moulton, the founder and managing partner at Alchemy Partners, has held talks with Derek Lovelock, the chief executive of Mosaic. Mr Lovelock said: "Mosaic... would like to state that the business does not require saving, as has been stated by a number of parties. The business has sufficient funding in place to meet all foreseeable obligations."

Will Sir Philip Green take over Baugur?