Retail giant Marks & Spencer appears to have won the support of its private shareholders to fend off a proposed £9.1 billion takeover by tycoon Philip Green.

At yesterday's annual meeting of M&S in London, many investors said new chief executive Stuart Rose should be given time to turn the struggling retailer around.

A chorus of boos met shareholder Leonard Bash, who compared the sales performance at Bhs, which is owned by Mr Green, with the faltering trading performance at M&S.

But investors sought assurances from the board about the strength of the M&S pension fund and details of the £2.3 billion windfall unveiled by Mr Rose on Monday.

There was also criticism of overseas investment houses which will play a key role in the takeover battle.

M&S has rejected three approaches from Mr Green, including a final proposal of 400p per share, on the grounds they undervalued the group.

Chairman Paul Myners said: "Some people have asked whether we are depriving shareholders of choice.

"If a bidder disagrees with a board's view on value, the usual way for a bidder to offer shareholders a choice is for the bidder to make a formal offer to shareholders directly."

Individual investors own about 20 per cent of M&S shares and many of the 3,000 shareholders at the meeting felt M&S had not kept them up to date.

Martin Edwards-Simmons said the company should thank Mr Green for spurring management to focus on the business but a formal bid would be an "appalling distraction".

Overseas investors such as US-based Brandes, which has conditionally agreed to sell its 11.7 per cent stake to Mr Green, were criticised for apparently missing the meeting.

Mr Edwards-Simmons said: "It's disgraceful.

"We don't want absent shareholders deciding the future."

Investor Barry Hyman said institutional investors would be more interested in banking profits.

He said: "I prefer an M&S that is looking through Rose-tinted spectacles than one that is going Green around the gills."

But some shareholders were angry at the need for a new management team to drive another sales recovery.

One investor said: "Does anybody think that shares would have increased over the past three months if there wasn't a takeover approach?

Investors also criticised pay-offs to ousted chief executive Roger Holmes and chairman Luc Vandevelde, which many saw as "rewards for failure".

Thursday July 15, 2004