PHILIP Green, the billionaire owner of UK-based Bhs Group Ltd, said he's been in talks with Baugur Group Hf, after the Financial Times reported he may spend as much as 2 billion pounds (US$3.4 billion) to buy debt held by Baugur in collapsed Icelandic banks.

"I have been in Reykjavik, and I've been talking to Baugur," Green said on Saturday in an interview with Bloomberg News. "There have been no developments yet."

Baugur, whose UK stores include House of Fraser, Karen Millen and Hamleys, is seeking to avoid a collapse after lenders, suppliers and insurers became concerned about the repercussions of the nationalization of Iceland's banks last week, the FT said. Some of Baugur's assets have been frozen, the paper said.

Baugur has held talks with Green, said Fergus Wylie, a London-based spokesman for the retail company.

On Thursday, private-equity investor Jon Moulton said his Alchemy Partners LLP had been approached by representatives to seek buyers for Baugur assets in UK.