Arcadia's board says it has still to make a decision on Mr Philip Green's latest takeover bid.
BHS's owner Mr Green has increased his provisional takeover bid for Arcadia to nearly £775 million sterling. He said the possible 408p-a-share offer is a "final proposal".
Including options that have been promised to senior management, the offer would be worth £850 million.
But Arcadia's board, which has met its advisers to discuss the bid, says it wants the terms of the deal clarified. In particular, it wants to know more about arrangements between Mr Green and Baugur, the Icelandic firm that owns 20 per cent of Arcadia.
Arcadia, which owns high street chains including Top Shop, Miss Selfridge and Dorothy Perkins, said: "In the light of the board's concerns on these issues, no decision has been made on the merits of the proposal".
Yesterday evening, Mr Green's bid was dealt a blow when it emerged that Baugur's headquarters had been raided by police.
Baugur has revealed that its chairman and chief executive have been questioned about alleged criminal action centring on links with a US wholesaler. It says the accusations are "without foundation".
PA