Mahesh “Micky” Jagtiani, the Dubai-based entrepreneur, may consider a joint bid for Debenhams, as well as buying stakes in other UK retailers.

The former London cabbie emerged as a 7.3 per cent shareholder in Debenhams on Monday night, sparking speculation of an offer for the embattled department store group.

Mr Jagtiani told The Times yesterday the investment was likely to be “very short term” but admitted this may change if partners approached him. Baugur owns a 13 per cent stake in Debenhams and Mr Jagtiani is working with the Icelandic investor on a bid for Saks, the US luxury retailer.

Mr Jagtiani said: “If somebody came along and said, 'Do you want to be a partner in Debenhams?' I would consider it, but so far nobody has stepped forward.”

He added: “[Debenhams] was a very good price and I figured it was bound to go up in the future.”

The comments could renew speculation of a possible offer for Debenhams once trading conditions on the high street improve. Its shares surged 7 per cent on Tuesday after the news of Mr Jagtiani's purchase broke. The shares tumbled to 76p on Monday, the lowest level since it floated at 195p last year.

Debenhams issued a profits warning earlier this year and has recently been dogged by rumours of poor trading in the run-up to Christmas.

Mr Jagtiani was touted as a possible member of a consortium eyeing the business before it floated. He owns a 3 per cent stake in New Look, the fashion chain, and said he wants to add more UK retailers to diversify his portfolio.

“There are lots of interesting propositions out there, especially in the UK retail market,” he said.

Mr Jagtiani runs more than 600 stores across the Gulf through the Landmark Group.

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