Investment firm may bid for Saks

(Fortune Magazine) -- An Icelandic investment firm said on Monday that it might make a joint bid for Saks Inc.

According to a filing with the Securities and Exchange Commission made late Monday, the Baugur Group of Iceland said it has had exploratory discussions with Milestone Resources Group about making a joint proposal to acquire Saks.

Baugur began amassing a stake in Saks this summer, though it has insisted, through a spokesman, that it's interest in the retailer is passive. Baugur and Milestone, also known as the Landmark Group of Dubai, have contracts giving them the right to buy 9.7 percent of Saks outstanding stock.

Fortune.com reported earlier this month that Baugur had an interest in acquiring Saks. The Icelandic firm already owns British retailers House of Fraser and Karen Millen, and is interested in gaining a foothold in the U.S.

Saks (Charts)' stock rose 10 percent in after-hours trading to $21.75.