Shareholder increases stake in Debenhams

An investment group run by retail entrepreneur Mickey Jagtiani snapped up a bigger slice of British department store chain Debenhams today.

Shares in Debenhams rose 6% on the FTSE on takeover speculation after it emerged Dubai-based Milestone Resources had increased its holding to 9.1% from 8.4%.

Mr Jagtiani runs the Dubai-based business Landmark Group, which has more than 600 shops in India, Spain and the Middle East. It has also diversified into sectors such as leisure, hotels and electronics.

He is also thought to have ties with Icelandic investment group Baugur, which has a 13% stake in Debenhams and owns House of Fraser.

Debenhams operates 141 stores in the UK and Ireland.