THE Swedish millionaire who grabbed a near 30 per cent stake in East Lancashire carpet manufacturer Gaskell plc has assured the company he has no intention of taking over the business.

Entrepreneur Peter Gyllenhammar spent an estimated £1.3million earlier this week on buying a 29 per cent stake -- right on the limit before having to make an offer for the entire operation.

Today, he insisted his stake was no more than a financial investment in Gaskell, which employs around 400 people at Rishton and Clayton-le-Moors.

He said: "There was a big stake available at a good price. I have spoken to the management and I am happy to be investing in something they are managing."

Gaskell came close to going out of business earlier this year before it sold its carpet tiles division and its Kidderminster factory for a total of £21million to clear mounting debts.

Mr Gyllenhammar also owns a five per cent stake in Blackburn-based Scapa plc, which he acquired in April at a cost of more than £2million.

None of the senior management team at Gaskell has been available to discuss the implications of Mr Gyllenhammar's interest in the business.

The company -- once Britain's third largest carpet manufacturer -- has been in crisis for the past three years after buying Tomkinsons Carpets in Kidderminster in an ill-fated £12million deal.

Last week, Gaskell announced a pre-tax profit of £3.1million for the first six months of the year, but chairman Alan Chamberlain said the company was still experiencing difficult trading conditions.