Mohamed Fayed is considering an initial public offering of Harrods, the London department store. The controversial tycoon is weighing a partial listing of the prestigious business, structured so as to enable him to raise money but also retain control.

The idea is at an early stage, but Mr Fayed has made clear his intention that Harrods become a public company in the US rather than in the UK, listing on the New York Stock Exchange.

Yesterday Mr Fayed refused to confirm the offering plan. But it is understood that Mr Fayed plans to move ahead with the plan in the first half of this year.

Mr Fayed sought to dispel rumours that Harrods' recent trading performance had caused the company financial problems. - (Financial Times Service)