DEPARTMENT store group House of Fraser could again be a target for potential suitors after recording a "creditable" festive trading period.

The company, which includes the Binns group, delivered a 0.1 per cent rise in like-for-like sales during the 23 weeks to January 3.

Total sales at its 49 UK stores were 1.7 per cent down on a year ago. This was due to disruption caused by the refurbishment of three outlets last year and the closure of its Aberdeen, Dundee and Perth branches in 2002.

Chief executive John Coleman said higher than expected cost savings of more than £13m meant House of Fraser was on track to deliver a satisfactory trading outcome for the year.

Anthony Platts, assistant director at stockbrokers Wise Speke, said: "Scottish entrepreneur Tom Hunter made an unsuccessful £197m offer for the group back in December 2002. This was rebuffed by House of Fraser as too low.

"In September of last year, Hunter increased his stake to 11 per cent, buying a further ten million shares. Also, thought to be acting in concert, are acquisitive Icelandic retail group Bauger, who hold over ten per cent of the shares.

"Having made one failed bid, Hunter has had to bide his time before trying again due to a time restriction imposed by the Takeover Panel. This has now expired and a new higher offer is now thought to be imminent."