The Flagship suffered from the Central Line closure

According to the Financial Times, Scottish retail entrepreneur Tom Hunter is lining up a bid for the group.

Mr Hunter recently mounted failed takeover bids for both the House of Fraser and Allders store groups.

News of his interest is likely to spark a bidding war for Selfridges, which has been valued at �460m, the FT said.

Rumours

Selfridges shares closed up 57p, or 22%, at 315p after Selfridges said the offer was at a substantial premium to Wednesday's closing price.

The company added: "The possible offer is subject to a number of conditions and there can be no assurance that an offer will ultimately be made."

News of a confirmed bid was hardly a surprise for City analysts.

Richard Ratner, head of research at stockbroker Seymour Pierce, said rumours had circulated earlier in the week about Icelandic retailer Baugur preparing a possible bid.

Selfridges, which sells designer labels such as Paul Smith and Burberry, has been suffering recently as shoppers have started to shun the High Street amid the global economic slowdown and the war on Iraq.

Problems

It also experienced problems with the temporary closure of one of London's main Underground lines, making it harder for shoppers to reach its flagship Oxford Street store.

Mr Hunter sold his Sports Division chain to JJB Sports in 1998 for �290m, netting him a personal fortune of �250m.