Fayed 'plans to hold Harrods'

Philip Green, the retail entrepreneur yesterday denied that he had offered to buy Harrods, the upmarket department store owned by Mohamed al Fayed. Mr Fayed also denied any sale had ever been discussed.

Mr Green said: "I've not made an offer, I've never made an offer."

The high street investor, who owns Bhs and Arcadia and is involved in the five-way bid battle for Safeway, was responding to a newspaper report that he had made a bid for the landmark store in London's Knightsbridge late last year.

The report suggested that Mr Green baulked at Mr Fayed's £2bn asking price but that he may be hoping that the Egyptian-born businessman might be prepared to listen to a lower offer. Harrods issued a statement yesterday saying that the two businessmen had not met to discuss the sale of Harrods, and that Mr Fayed had no intentions of selling his flagship asset.

A Harrods spokesman said the only business deal discussed by the two entrepreneurs occurred late last year and was about the possibility of selling Harrods-branded goods in Mr Green's outlets. The meeting was apparently initiated by Mr Green but came to nothing.

Harrods said this was one of only two meetings between the two men. The other was a social engagement, Harrods said.

Harrods is likely to have been affected by the fall in tourist numbers in London.