Mike Ashley's Sports Direct is considering tabling an offer for Debenhams that would value the struggling the department store chain at £61.4 million.
The "possible firm offer" would be for the 70 per cent of Debenhams shares that Mr Ashley does not already own.
He would pay 5p per share, or £43 million, in his latest attempt to seize control of the retailer.
Debenhams has so far resisted overtures by the billionaire, favouring its own refinancing plan that would wipe out existing shareholders such as Mr Ashley.
Chris Wootton, deputy finance chief at Sports Direct, said: "Debenhams shareholders, both major and minority, are sick and tired of being ignored, cast aside and trampled underfoot by the lenders of Debenhams who through the incompetence, or worse collusion, of the board, are allowing these critical stakeholders in the business to be wiped out, this is the shareholders chance to fight back.
"We reiterate our prior comments that we will leave no stone unturned in pursuing those responsible for this long-planned theft."
Shares in Debenhams jumped over 70 per cent in early trade to 3.7p.
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