The owner of Waterstones is in talks with the founder of Matalan about backing his bid to take full control of the fashion retailer.
Elliott Advisors has refused to deny the story, first reported by Sky News, that it is considering funding an offer by John Hargreaves to buy back the Liverpool 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.
