Speculation has surfaced that Sir Philip Green, who has sold a 25 per cent stake in his Topshop and Topman chain for 500m pounds to a US private equity outfit, is lining up a bid for Marks & Spencer, whose shares were up in midday trade.
Rik Thakrar, risk manager and senior dealer at Spread Co said: "It is no secret that Sir Philip has long coveted Marks & Spencer, and has wanted to bring his expertise to restore the blue-blooded retailer to former glories.
"Investors are clearly speculating that the Arcadia Chairman will use his newly acquired funds to launch a takeover of M&S. Despite shares being close to a one-month high, the Spread Co dealing desk has recorded a surge in long positions in M&S this morning."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The buyer of Green's stake in Topshop and Topman was US private equity group Leonard Green and Partners. It is also likely that any future bid for M&S will involve some form of private equity backing, given the current £6.3bn market cap of M&S.
Green's last attempt to take over Marks & Spencer failed eight years ago. He offered £9.1bn in a hostile bid, which equated to 400p a share.
At 12.15 Marks & Spencer shares were up 3.3p at 397.6p.
CM
-
Nvidia's earnings live: China trade the key question for semiconductor giant’s resultsAll eyes are on Nvidia’s earnings release this week, as analysts question whether Blackwell sales can make up for lost China revenue following Trump’s trade crackdown
-
8 of the best lakeside properties for saleThe best lakeside properties – from a house on the southeastern shore of Loch Lomond, to a 15th-century hall overlooking a lake in King’s Lynn, Norfolk
