Green seeks feedback on share element in revised M&S bid

Philip Green is planning to sound out shareholders in Marks & Spencer about whether they are keen for him to include an equity alternative in any revised bid for the retailer.

Philip Green is planning to sound out shareholders in Marks & Spencer about whether they are keen for him to include an equity alternative in any revised bid for the retailer.

The Monaco-based entrepreneur yesterday met with his advisers to mull over his options. They include tabling a revised all-cash offer, which could value M&S at up to £10bn including debt, and raising the amount of stub equity that he offers investors.

Shares in M&S yesterday rose 4p to 361.5p, valuing the group's equity at £8.2bn, as the City bet that Mr Green would raise his offer. The retailer's board last week rejected Mr Green's first proposed offer, which included giving investors a 25 per cent stake in a new M&S holding company.

Shareholders yesterday appeared split over the merits of a higher straight cash offer versus a mixture of cash and shares in a newly created company controlled by Mr Green. Tim Green, at Brewin Dolphin, one of M&S's top UK institutional investors, said: "I don't see an all-cash offer being particularly useful because people want a share in the upside. The offer of equity was a great idea and shouldn't be dropped too hastily."

However another top 10 shareholder questioned the point of an equity alternative given the City's inability to decide what the so-called stub was worth. Analysts valued the equity portion of Mr Green's proposal last week at anything from 22p to 100p per share. "The market is very poor at valuing these vehicles. My preference is for a cash premium," the shareholder said.

Analysts reckon that Mr Green would have to offer more than 400p per share in cash to win the support of the group's institutional investors. But even this may not be enough to sway the 350,000-strong army of private investors who own around 20 per cent of the company.

The three US institutions - Brandes, Artisan Partners and Capital International - that own almost one-fifth of M&S remained tight-lipped about their plans for their stakes. The trio share a reputation as long-term value investors.

Separately, Mr Green's camp denied reports it sought informal guidance from the Office of Fair Trading over any competition issues that may arise from a bid. The Bhs and Arcadia owner would control more than 25 per cent of the womenswear market if he acquires M&S.

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Pricing Analyst

£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...

Guru Careers: C# Project Team Lead

£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...

Day In a Page

Why the cost of parenting has become so expensive

Why the cost of parenting has become so expensive

Today's pre-school child costs £35,000, according to Aviva. And that's but the tip of an iceberg, says DJ Taylor
Fifa corruption: The 161-page dossier that exposes the organisation's dark heart

The 161-page dossier that exposes Fifa's dark heart

How did a group of corrupt officials turn football’s governing body into what was, in essence, a criminal enterprise? Chris Green and David Connett reveal all
Mediterranean migrant crisis: 'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves,' says Tripoli PM

Exclusive interview with Tripoli PM Khalifa al-Ghweil

'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves'
Raymond Chandler's Los Angeles: How the author foretold the Californian water crisis

Raymond Chandler's Los Angeles

How the author foretold the Californian water crisis
Chinese artist who posted funny image of President Xi Jinping facing five years in prison as authorities crackdown on dissent in the arts

Art attack

Chinese artist who posted funny image of President Xi Jinping facing five years in prison
Marc Jacobs is putting Cher in the limelight as the face of his latest campaign

Cher is the new face of Marc Jacobs

Alexander Fury explains why designers are turning to august stars to front their lines
Parents of six-year-old who beat leukaemia plan to climb Ben Nevis for cancer charity

'I'm climbing Ben Nevis for my daughter'

Karen Attwood's young daughter Yasmin beat cancer. Now her family is about to take on a new challenge - scaling Ben Nevis to help other children
10 best wedding gift ideas

It's that time of year again... 10 best wedding gift ideas

Forget that fancy toaster, we've gone off-list to find memorable gifts that will last a lifetime
Paul Scholes column: With the Premier League over for another year, here are my end of season awards

Paul Scholes column

With the Premier League over for another year, here are my end of season awards
Heysel disaster 30th anniversary: Liverpool have seen too much tragedy to forget fateful day in Belgium

Liverpool have seen too much tragedy to forget Heysel

Thirty years ago, 39 fans waiting to watch a European Cup final died as a result of a fatal cocktail of circumstances. Ian Herbert looks at how a club dealt with this tragedy
Amir Khan vs Chris Algieri: Khan’s audition for Floyd Mayweather may turn into a no-win situation, says Frank Warren

Khan’s audition for Mayweather may turn into a no-win situation

The Bolton fighter could be damned if he dazzles and damned if he doesn’t against Algieri, the man last seen being decked six times by Pacquiao, says Frank Warren
Blundering Tony Blair quits as Middle East peace envoy – only Israel will miss him

Blundering Blair quits as Middle East peace envoy – only Israel will miss him

For Arabs – and for Britons who lost their loved ones in his shambolic war in Iraq – his appointment was an insult, says Robert Fisk
Fifa corruption arrests: All hail the Feds for riding to football's rescue

Fifa corruption arrests

All hail the Feds for riding to football's rescue, says Ian Herbert
Isis in Syria: The Kurdish enclave still resisting the tyranny of President Assad and militant fighters

The Kurdish enclave still resisting the tyranny of Assad and Isis

In Syrian Kurdish cantons along the Turkish border, the progressive aims of the 2011 uprising are being enacted despite the war. Patrick Cockburn returns to Amuda
How I survived Cambodia's Killing Fields: Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape the US

How I survived Cambodia's Killing Fields

Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape to the US