NEW YORK — Toys R Us Inc., the nation's second biggest toy retailer, has narrowed the field of potential buyers of its toy operation to four groups and is pressing them to sweeten their offers in a final bidding round, The Wall Street Journal reported Tuesday.

The Journal, citing unidentified people familiar with the matter, said the groups have offered $3 billion to $3.5 billion for the unit, which the newspaper said was at the high end of what analysts expected for the 975-store global toy store chain.

The newspaper said the company, based in Wayne, N.J., could choose a winning bid as early as next week.

The company said in August it was considering the sale of the unit, and the newspaper said it has received about a dozen overtures.

The toy business has been hurt by price cutting from the big discount chains such as Wal-Mart Stores Inc., the nation's biggest toy seller, and Toys R Us management wants to separate it from the baby-goods chain, which is doing better. The toy business accounts for about 80 percent of its sales.

The Journal identified the four remaining bidding groups as buyout specialists Kohlberg Kravis Roberts & Co.; a partnership of Apollo Advisors LP and Permira Advisors Ltd.; an alliance between Bain Capital LLC and Vornado Realty Trust; and a group that includes Cerberus Capital Management LP, Kimco Realty Corp. and Goldman Sachs Group Inc.

The Journal said a spokeswoman for Toys R Us and representatives for Cerberus, Goldman, KKR, Vornado and Bain declined to comment. It said Kimco and Apollo didn't return calls seeking comment.

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