UK's Green in talks with Iceland's Baugur - FT

LONDON, Oct 11 (Reuters) - British entrepreneur Sir Philip Green is in talks in Iceland about investing up to 2 billion sterling ($3.46 billion) in the Baugur retail group, the Financial Times reported on Saturday.

Baugur, which included British retailing brands like House of Fraser and Hamleys, had seen part of its assets frozen in the the Icelandic banking crisis, said the newspaper.

It said Green, owner of BHS and Topshop in Britain, had steered clear of equity markets and kept his assets safe in the current global financial crisis.

Green arrived in Reykjavik on Friday on a private jet with Baugur chairman Jon Asgeir Johannesson, looking to win as large a share as possible of the group's British brands, said the newspaper.

It quoted Green as saying he was in talks with Johannesson and Baugur chief executive Gunnar Sigurdsson to buy all the debt held by Baugur in collapsed Icelandic banks, which people in Iceland said was between 1 and 2 billion sterling.

"All the assets have been frozen," said Green. "I don't want any of these businesses to fall over, nor does Jon, nor does Gunnar."

The Financial Times said Baugur insisted the entire group was not up for sale, although a deal on debt with Green would leave him in a strong position to negotiate future acquisitions with the company. (Reporting by Ralph Gowling; editing by Carol Bishopric)