Four buyout firms have entered the final round of bidding for the Pets at Home, with each reportedly offering more than 800 million pounds.
Bridgepoint Capital, the owner of the British pet supplies retail chain, is considering bids tabled by KKR, Bain, Apax and TPG.
The company is also mulling over an initial public offering of Pets at Home as equity markets have rallied.
Earlier in October, Bridgepoint had employed JP Morgan Cazenove to advise it on possible alternatives.
Pets at Home, which sell small pets as well as pet accessories, had reported an increase of 29 per cent in pre-tax profits during last year ended March.
Bridgepoint had acquired Pets at Home in 2005 for 230 million pounds.
At present, Pets at Home operates more than 240 stores across the country.