Aug. 21 (Bloomberg) -- Saks Inc., the U.S. luxury chain, gained the most in more than three weeks in New York trading after the chairman of Baugur Group Hf said he's still looking at buying the U.S. company.

Saks rose 52 cents, or 5.2 percent, to $10.44 at 4 p.m. in New York Stock Exchange composite trading, the biggest increase since July 29. The shares have lost half their value this year.

Baugur Chairman Jon Asgeir Johannesson said yesterday in an interview that he's still ``actively'' interested in Saks and has cash to make a bid after his company sold units.

``We are still looking into the company, that much is clear,'' Johannesson, 40, said in an interview in Reykjavik. ``Saks is a great brand. I think it has a very good chance of placing itself at the high end and proving to be a great business. That is our vision for the company.''

Baugur, an Icelandic company that owns Britain's House of Fraser department stores, may wish to buy Saks and Debenhams Plc, the Financial Times reported today, citing people familiar with the matter.

Baugur owns stakes in both retailers and said in a regulatory filing last October that it might make a joint bid for Saks.

To contact the reporter on this story: Cotten Timberlake in Washington at ctimberlake@bloomberg.net

Last Updated: August 21, 2008 16:12 EDT