Green makes new M&S bid
bid to take over ailing clothing-to-food group Marks & Spencer
amid an increasingly bitter battle of words with opponents of the
bid.
Green's bidding vehicle, Revival Acquisitions, has today announced a possible all-cash bid of 400 pence per share for M&S, valuing the company at £9.1 billion, a significant increase on his initial £7 billion proposal and, more importantly, matching the valuation expectations of M& S shareholders.
Indeed, Revival said in a statement that it had the backing of the largest shareholder in M&S - the Brandes Investment Partners group - for its bid, effectively giving Green some 11.7 per cent of M&S. This backing is, however, dependent on the company's board giving their recommendation to the Revival proposal, should a firm bid be made by 6 August.
Green also maintained his part-cash, part-share offer for M&S, presenting an alternative offer of 335 pence per share plus a 30 per cent equity interest in Revival as an alternative to the all-cash offer thought to be preferred by M&S shareholders.
The backing of Brandes could, Green hopes, persuade other M&S shareholders to part with their stakes, but the company's repeated insistence that its new management team, led by Green's friend and former colleague Stuart Rose, is best placed to steer the company out of trouble would suggest that even the higher offer might still prove too little.
Of course, a prolonged takeover battle for the company is in no-one's interest, and the rumour, speculation and allegations surrounding the company are already increasing in number, with Green and Rose trading (mostly) friendly insults amid questions over Rose's acquisition of a packet of M&S shares just days before he was appointed chief executive.
Other parties have also felt happy to have their say, with the latest anti-Green statements coming from Business in the Community, a business-led campaign for corporate responsibility. Presenting Rose with a company of the year award this week, BITC's chief executive Julia Cleverdon suggested that Green did not share the M&S values in core areas such as sustainable food production and labour standards.
Green, not surprisingly, has rejected these claims, pointing to his track record in other retail operations in the UK such as BhS.
