M&S board still considering takeover offer

The board of Marks & Spencer will continue deliberating tycoon Philip Green’s increased takeover offer of £9.1bn (€13.6bn) when it meets this morning.

Board members are to consider the proposal after Mr Green secured the support of M&S’s largest investor.

The tycoon yesterday said he expected other M&S investors to follow US-based Brandes, which has an 11.7% stake, in accepting his “final proposal” to pay 400p for each of the company’s shares.

The Bhs and Arcadia owner said: “Brandes knows more than anybody else where this company has been over the past four years and this is the right value.”

M&S board members held a three-hour meeting yesterday following Mr Green’s latest offer, which remains conditional subject to their approval.

The board has twice rejected approaches on the grounds that they significantly undervalued the company and its prospects.

In addition to the cash offer, investors would be able to accept a lower sum and take a 30% stake in bid vehicle Revival Acquisitions.

But the deal also hinges on M&S allowing his team to complete due diligence before a formal bid is made.

“This is the biggest amount of money ever put up in Europe,” Mr Green said.

“Most people would understand that we need to get an element of comfort because we are on the outside looking in. That can’t be unreasonable.”

A formal offer would have to be delivered to investors ahead of the August 6 deadline set by the Takeover Panel on Tuesday.

M&S chief executive Stuart Rose is due to outline his vision for improving the trading performance of the retailer on Monday.

This is expected to include savings from the supply chain, a revaluation of M&S property and initiatives to drive like-for-like sales.