Corporate predator Iceland warms to theme.

Icelandic acquisitions in Britain are continuing with claims that Nordic retailer Baugur has the Principles and Warehouse fashion chains in its sights.

The Sunday Times report yesterday came after shares in budget airline easyJet jumped 17pc on Friday on speculation that one of three Icelandic carriers may be considering a takeover.

Rumours, which pushed the stock to 154p before the weekend, suggest that either Air Atlanta Icelandic, Icelandair or Iceland Express may be looking at easyJet.

Iceland, a country previously known for cod wars and pop singer Bjork, has emerged as a corporate predator in Britain.

Research by the Bureau Van Dijk Electronic Publishing group in September showed that the Nordic state was one of the top 10 companies investing in Britain in 2004; helped by the Bauger Group's purchase of the Karen Millen fashion chain.

The Sunday Times said yesterday that Baugur is in preliminary talks on buying a stake in Principles and Warehouse owner Rubicon, and has not ruled out a full blown takeover offer.

It will be the latest in a series of acquisitions.

In November, Baugur clinched a pounds 152m takeover of the Oasis fashion brand and followed this up with a pounds 120m deal for Karen Millen in June.

It also owns the Coast and Whistle brands, while speculation has linked it to a pounds 90m takeover of womenswear retailer Hobbs.

Iceland, which has a population of 294,000 ( around the same as Nottingham ( has enjoyed more than a decade of strong growth, with the economy having grown by between three and five per cent annually.

While the British FTSE 100 index has risen 8pc in the last year, Iceland's ICEX 15 has jumped 102pc.