Lord Harris of Peckham is believed to have linked with HBOS and Olayan Group to discuss submitting a joint £900m bid for Carpetright.
The offer is thought to be in the early stages of formulation.
Meanwhile, Credit Suisse has linked with a group of hedge funds to try to buy the Ethel Austen fashion chain.
Arev is thought to be close to announcing the acquisition of the 33-store Mountain Warehouse discount outdoor retailing chain for about £17m.
