Updated from 10:25 a.m. EDTSAN FRANCISCO -- An Icelandic investment firm is eyeing an acquisition of Saks ( SKS), opening the possibility of another U.S. luxury retailer falling into the hands of foreign investors. Shares of Saks jumped 6% Tuesday after Baugur Group disclosed in a regulatory filing that it owns 12.2 million shares of the company, representing an 8.5% stake. The firm said it expects to begin talks with Saks' management and board about a possible acquisition. Baugur is an investment company focused on retail, property and media in Iceland, the U.K., and Scandinavia. Among its retail holdings are Hamleys, an international toy retailer; Goldsmiths, the U.K.'s second largest jewelry retailer; and Magasin du Nord and Illum, one of Denmark's largest department store chains. In the filing, Baugur said it has held discussions with Dubai-based Landmark Group about possibly making a joint bid. Landmark, a retailer with multiple franchises in the Middle East, owns 1.66 million Saks shares, representing a 1.2% stake. The firm is run by Indian billionaire Micky Jagtiani. New York-based Saks has long been rumored to be a takeout target, but talk has heated up in recent weeks, with Baugur being speculated in the media as a suitor. The company's stock has climbed 15% since the beginning of the month. Shares recently were up another $1.07, or 5.4%, to $20.86. A Saks representative declined to comment on Baugur's filing and the prospects of a buyout.