Billionaire retail entrepreneur Philip Green on Thursday launched an £850 million bid for  the Arcadia group, owner of leading high street chains including Top Shop, Wallis and Miss Selfridge.

The Bhs chief's offer of 408p a share eclipses his first £690m, or 365p a share, bid earlier this month which Arcadia rejected as too little. His latest offer sent the group's shares soaring to more than 10 per cent to 390p in early trade today.

Green said his new offer, which is conditional on the board recommending it to shareholders, is a "final proposal" and is a "take it or leave it deal".

Icelandic retail giant Baugur owns a 20 per cent stake in Arcadia and has given its backing to Green's bid. Baugur itself made an abortive bid for the company earlier this year.

Should Green's bid be successful his retail empire would dominate the women's wear market with a 12.9 per cent share ahead of Marks & Spencer's 12.1 per cent stake.