M&S: board set to reject Green
MARKS & Spencer's directors are likely to reject a 310p a share offer from retail entrepreneur Philip Green. Shares in the company fell in early trading as the City absorbed details of Green's offer, equivalent to almost £10bn.
Green said he was prepared to pay between 290p-310p a share plus a 25% stake in his takeover vehicle, Revival Acquisitions, which will be listed on the stock market.
The offer was at the lower end of expectations and disappointed many stock watchers who had been expecting a bid closer to the 350p-360p a share.
Brokers Panmure Gordon said it did not expect the M&S board would recommend Green's bid to investors.
Other analysts said Green would have to come back with a higher offer if he was serious about a takeover. But few believe he has the appetite for a prolonged takeover battle and most expect him to walk away if the group demands a higher premium.
'Philip Green does not intend to wage a costly takeover battle, that's just not his style,' said one analyst.
Today‘s bid proposals come less than a day after Marks & Spencer‘s management persuaded the High Court to block Green's legal team, Freshfields, from advising him in the takeover bid.
M&S said that Freshfields had a conflict of interests because the firm had in the past worked for the group itself and would have had access to sensitive information.
A group of five City banks is providing the bulk of the £7.5bn cash component of Green's bid.
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