Icelandic investor Baugur could be planning to acquire men's wear chain Moss Bros, which it already has a stake of about 30% in with British businessman Kevin Stanford, press reports said.

According to The Financial Mail on Sunday, Moss Bros' chairman Keith Hamill plans to recommend an offer of about GBP80m (US$152.14m) but Baugur thinks this is overvaluing the company.

A spokesperson for Baugur told just-style: "…it is the policy of the company not to comment on speculation concerning companies in which it has investments".

Moss Bros spokespeople could not immediately be contacted for comment.

Baugur's other investments include the Karen Millen retail chain and Iceland supermarkets.

Moss Bros recently reported a 53% drop in first-half pretax profit, hit by what it described as a "challenging environment" and rising property and utility costs.

Chief executive Philip Mountford has taken direct responsibility for the company's operations, merchandising and buying activities to get it back on track.