Baugur has interest in French Connection

Baugur, the Icelandic retailer that owns UK chains from Hamleys to Oasis, is looking to acquire a 3 per cent stake in French Connection, the fashion retailer. Baugur is believed to have instructed a London-based broker to acquire the stake, which will cost around £9m. The purchase will increase speculation that Baugur could eventually bid for all of French Connection, which issued a profit warning last November.