Tycoon Philip Green has turned up the heat on Marks & Spencer by increasing his proposed takeover offer to £9.1 billion and securing the support of its largest investor.
Mr Green said he expected other M&S investors to follow US-based Brandes, which has an 11.7 per cent 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."
The latest proposal remains conditional on the support of the M&S board, which has twice rejected approaches on the grounds that they significantly undervalued the company and its prospects.
A M&S spokesman said it noted yesterday's announcement and would respond in due course.
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.
Mr Green ruled out mounting a hostile takeover campaign if his overtures are rebuffed again, vowing to 'go and sit on a beach'.
In addition to the cash offer, investors would be able to accept a lower sum and take a 30 per cent 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.
A formal offer would have to be delivered to investors ahead of an August 6 deadline.
City stockbrokers Seymour Pierce said that the new proposal was too high for M&S to dismiss summarily, and that it should attract the support of other investors.
But other analysts were more cautious, and a rise of only four per cent in M&S shares to 374p suggested that the offer may not be enough to land a knock-out blow.
Thursday July 08, 2004
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