M&S shares down after takeover bid fails
Shares in Marks & Spencer fell 6% today after retail entrepreneur Philip Green walked away from the battle to land the struggling high street group.
Despite the 20.5p (30.7c) decline to 343.5p (€5.10), the blue-chip stock remained well above the 290p (€4.30) price seen prior to the emergence of interest from the Bhs boss.
Analysts said the premium reflected faith in the strategy put in place by new chief executive Stuart Rose, who unveiled a series of turnaround measures as well as a £2.3bn (€3.4bn) windfall for shareholders earlier this week.
But Mr Rose still has some way to go to match the 400p (€6) investors would have received if Mr Green’s approach had been successful.
Henk Potts, of Barclays Stockbrokers, said: “Even though he has now walked away, M&S customers and shareholders have benefited from Philip Green’s involvement. The company’s been shaken up and reinvigorated as a result.”
Mr Green said last night he would not be proceeding after the M&S board defied calls from its largest shareholder Brandes to allow him to complete due diligence.
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