Green offers Â£9bn
by: Leslie Bunder - Last updated: 2004-06-03
Billionaire retail tycoon Philip Green who owns BHs and the Arcadia chain of clothing businesses has made his expected formal offer for high street retailer Marks and Spencer.
Through his investment company Revival, he is offering up to Â£3.10 for every Marks and Spencer share plus will give existing shareholders up to 25% in the new company.
According to city analysts, the offer is worth around Â£9 billion with Green himself putting in just over Â£1 billion of his own personal wealth but some believe that Green may have to up his offer if it is to be recommended by the Marks and Spencer board.
But in order for the offer to go through, Green has requested a number of conditions that need to be satisfied. These included assurances about the state of the current Marks and Spencer pension fund, details of the relationship with fashion designer George Davies who is responsible for the Per Una range and information about the Simply Food division.
In order to defend its position, Marks and Spencer has appointed new executives with former Arcadia boss Stuart Rose becoming chief executive earlier this week.