M&S rejects Green bid :: Namibia Internet Gateway cc ::

Articles: M&S rejects Green bid

Posted by admin on Thursday, July 08, 2004 - 07:12 AM

STUGGLING retailer Marks &Spencer today rejected a £9.1bn takeover offer from tycoon Philip Green.
In a statement, the M&S board said the offer continued to undervalue the group. It is the third time directors have turned down bids by Mr Green on the grounds that they did not fully reflect the company's worth or its prospects. The announcement followed news that a second investor has come out in support of Mr Green's "final" offer. Investment bank Schroders, which has a 1.2% holding in M&S, has accepted his final proposal of £4 for each of the company's shares. US-based Brandes yesterday pledged to sell its 11.7% stake to Mr Green if the proposed offer is recommended by the M&S board. M&S directors met for three hours yesterday to discuss the offer and again early today before issuing a flat rejection. Mr Green has said he is willing to pay £4 a share, but investors can opt to accept a lower sum and take a 30% stake in bid vehicle Revival Acquisitions. A formal offer has to be put to investors before the August 6 deadline set by the Takeover Panel two days ago. M&S chief executive Stuart Rose is finalising a major plan to improve the trading performance of the struggling retailer. The plan - likely to mean cost cutting and a new sales drive - will be announced next Monday.

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