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M&S rejects Green bid

by: Leslie Bunder - Last updated: 2004-06-17

Philip Green

Philip Green

Marks and Spencer has rejected a second cash and new shares offer from retail billionaire Philip Green which values the high street company at £8.3bn.

Earlier this month, Green who owns BHs and Top Shop tabled a bid via his Revival Acquisitions worth up to 310p for each Marks and Spencer which was turned down and has now upped it to 370p a share.
Green would be putting in atleast £1bn of his own money to make the deal happen.
But according to the M&S board which includes chief executive Stuart Rose, the offer is still not enough.
In a statement, M&S said: "The Board believes that an offer at 370 pence would significantly undervalue the Group and its prospects. The Board has therefore informed Revival Acquisitions that it does not intend to recommend an offer at this level to shareholders."
According to city analysts, it is likely that Green would have to offer atleast 400p a share before the company would consider being sold.
Green's bid and his timing comes as M&S itself has gone through some radical management changing with Rose taking to the top position.
Rose, who was appointed earlier this month, and was a former chief executive of Arcadia which Green bought, is set to announce his planned strategy for M&S on July 12 which he hopes will turnaround the retail giant and see off Green and other suitors.