M&S share offer may disappoint investors

Speculation is mounting that Marks & Spencer would offer investors less for their shares than the £4 promised by Philip Green in his takeover bid.

The group is due to announce the terms of its £2.3 billion tender offer to buy back shares from investors tomorrow, as part of its promise to return money.

But newspapers speculated yesterday that the buy-back price range would only be between 340p to 380p a share, compared with the £4 offered by Mr Green.

The share buy-back was part of a package of measures announced by chief executive Stuart Rose to win shareholders backing after fighting off Mr Green’s £9.1 billion takeover approach earlier in the summer.