M&S bid boosts FTSE

News of a higher takeover offer for Marks & Spencer today put London shares on course to break their recent loss-making run.

Billionaire entrepreneur Philip Green unveiled an improved proposal worth £9.1bn (€13.6bn) for the retailer, driving its shares nearly 6% higher.

Mobile phone group Vodafone was another strong riser as the FTSE 100 Index moved 12 points higher at 4382.7 in the first hour of trading.

The performance of the Footsie was in sharp contrast to other world markets, with the Nikkei nearly 90 points below its opening mark and the Dow Jones Industrial Average losing more than 60 points overnight.

Marks & Spencer was the biggest riser in London, up 20p (29.9c) at 380p (€5.70), as investors digested the details of a final proposal from Mr Green.

But its shares were below the 400p (€6) being offered by Mr Green, reflecting the view of analysts that he will be unsuccessful in winning the support of the M&S board for his bid.

Vodafone put some of its recent weakness behind it today to climb 3p (4.5c) to 120.75p (€1.80) following a positive report by brokers CSFB of the mobile phone sector. Rival mm02 was also ahead 1.25p (1.9c) to 93.25p (€1.40).

Elsewhere, low-cost easyJet improved 5p (7.5c) to 155p (€2.30) after revealing it carried 2.24 million passengers during June – a 28% increase on the same period a year earlier.

But motor dealer Reg Vardy fell 8% or 43.5p (65.1c) to 489p (€7.30) after news of a slowdown in recent sales of new cars clouded a record profits performance in the year to April 30.