M&S buys back its shares
M&S revealed the scheme, which will see £2.3 billion returned to shareholders as a reward for their loyalty during the fight against a potential £9.1bn takeover bid from retail tycoon Philip Green, was oversubscribed.
The tender offer will see 27.9% of M&S shares cancelled and approximately 1.65 billion still in circulation.
An M&S spokesman said it was too early to say how the buyback would affect the balance of power between institutions and its army of private shareholders.
This is important as Mr Green blamed opposition from private investors, who held 20% of M&S shares prior to the tender offer, for scuppering his takeover attempt.
The strike price for the tender is higher than the closing share price of 357p on Friday and way short of the 400p that Mr Green was willing to pay for each share to gain control.
M&S put the tender offer at the heart of its defence against the overtures of Mr Green, who is barred from bidding again for the retailer until February.
Funds for the buyback, approved by shareholders at a meeting in London on Friday, were raised from the sale of financial services arm M&S Money to HSBC.
