The founder of Liverpool-headquartered Matalan is in talks with the owner of Waterstones about funding his bid to take full control of the fashion retailer.
Elliott Advisors is considering backing an offer by John Hargreaves to buy back the chain. The US firm also has stakes in the likes of Avant Homes, Travelport and bookseller Foyles. It has previously invested in shopping centre owner Hammerson and pharmaceuticals giant GSK.
The investor has declined to deny the story, which was first reported by Sky News.
