Icelandic retail group Baugur has indicated it could make an offer for US fashion retailer Saks Inc.

Baugur, which has purchased 8.5% of Saks' shareholding, is exploring a joint offer with the Dubai-based Landmark Group, which itself owns 1.2% of Saks.

According to an SEC filing posted by Saks, Baugur has "determined that it would like to explore the possibility of making a proposal for the acquisition of the Issuer [Saks]."

Baugur, which has stakes in UK retail chains House of Fraser, Moss Bros and Hamleys, said it has had "exploratory" discussions with Milestone Resources Group Limited, which is principally owned by Micky Jagtiani, the principal owner of the Landmark Group, about making a joint proposal with Landmark.

Saks operates over 100 stores through its Saks Fifth Avenue and Off Fifth and Club Libby Lu labels.

Doug Donsky, a New York-based spokesman for Baugur, told just-style that the group was not commenting any further at this stage.