M&S boosted by shareholder faith

MARKS & Spencer's biggest shareholder Brandes has shown its support for the company by selling no more than a handful of shares in the tender.

The US fund manager disclosed its stake has risen to 15.3%. This demonstrates that it believes the shares are worth much more than the 362p tender price.

According to the last published figure, Brandes had an 11.9% holding. It could have taken it up to a maximum of 16.5% after Marks bought back 27.9% of its share capital.

Bankers believe its holding was reduced slightly ahead of the tender, so it may not have sold any shares at all this week.

Brandes has proved adept at spotting value in companies, so its decision to stay with Marks will be a boost to chief executive Stuart Rose.

Perhaps the fund manager believes Philip Green will return with a bid next year if Rose fails to perform. Marks shares rose 1/2p to 359p.