Scottish retail entrepreneur Tom Hunter on Monday snapped up another one million shares in department store group Allders - fuelling speculation he may bid for both it and rival House of Fraser.

In a statement on Tuesday, Hunter's West Coast Capital investment vehicle said it is "reviewing its options in relation to Allders" and "may or may not make an offer" for the group.

It added: "For the avoidance of doubt, West Coast Capital confirms that it has not entered into any agreements or arrangements with Minerva."

Allders has already accepted a £132 million takeover offer from major shareholder Minerva while Hunter recently saw his £197m bid for House of Fraser rejected by its board.

Following yesterday’s purchase of shares, West Coast now holds around a six per cent stake in Allders. He needs to own a 7.5 per cent stake in order to block Minerva's bid.

Hunter, who made £260m when he sold Sports Division to JJB Sports in 1998, is expected to decide whether to raise his House of Fraser bid when the retailer announces its latest results on Thursday.