Icelandic retailer Baugur is still waiting to secure funding for its £560 million offer for high street retail group Arcadia.

The company was to have submitted its bid last Friday for Arcadia, which includes Top Shop and Miss Selfridge, but according to a report in the Observer an offer of around 280p per share will land on chief executive Stuart Rose's desk early next month.

Funding is being sought from Deutsche Bank, Royal Bank of Scotland and Icelandic investors. Baugur already owns a 20 per cent in Arcadia, the UK's second biggest clothing retailer, but is anxious that the take-over attempt does not get hostile.

On Friday Baugur's backers were said to have almost completed the documentation necessary to enable the bid to go ahead.