Merrill Lynch is getting closer to sealing an acquisition for client Philip Green, the UK-based retail entrepreneur who owns the UK's Bhs chain, after helping him make an improved 408p (€6.38) offer for rival Arcadia.

Green has been consulting with Merrill for financial advice for some time. Ten days ago Green put forward an informal proposal of 365p per Arcadia share via a special purpose acquisition vehicle called Taveta Investments. This was rejected by Arcadia which went on to indicate that it would not take any proposal Green made seriously unless he offered at least 400p a share. The latest proposal represents a 11% increase on the previous package, and values Arcadia at £770m.