Ethical cosmetics retailer Body Shop International, negotiating a takeover worth around £300 million sterling, said talks are continuing with its Mexican suitor.
"Discussions are continuing with the third party, Omnilife de Mexico, but there can be no assurance that an agreement will be reached," Body Shop said in a statement ahead of its annual general meeting.
An industry source said earlier this month that Omnilife, a rapidly growing supplier of nutritional supplements, was discussing a bid valuing each Body Shop share at around 150p.
Body Shop's sales have been squeezed in recent years as other high street retailers muscled in on the market for ethical beauty products.
Body Shop also said it was in talks to buy out its US partner, Bellamy Retail Group, which has an option to acquire up to 51 per cent of Body Shop's US business.
"This would enable the group to retain 100 per cent of US operations and the services of Adrian Bellamy and his colleagues, who are doing a great job," a spokesman said.
Media reports had suggested Body Shop was likely to pull out of the United States.