Britain's Marks & Spencer rejected a 9.1 billion pound ($16.9 billion) takeover offer from retail tycoon Philip Green on Thursday, but the door remains open for a deal if investors baulk at M&S's own recovery plan.
In a statement, Chief Executive Stuart Rose's board said Green's 400-pence-per-share cash bid undervalued Britain's top clothing retailer, adding it was confident it had better prospects of turning around the ailing group.
"The board believes that (Green's bid vehicle) Revival's proposal for M&S of 400 pence per share continues to undervalue the group and its prospects significantly ... accordingly, the board would not be prepared to recommend an offer (if made) at this level," M&S said in a statement.
The board said there were "major areas of uncertainty" that Revival should clarify in a response widely regarded as a delaying tactic as Rose prepares to present his new strategy for the clothing, food and homewares retailer on Monday.
Britain's Takeover Panel said on Thursday it regarded the offer period as still open until August 6, and a source close to the matter said this had been a deliberate tactic on M&S's part.
"If Monday goes badly and everyone blows a raspberry, then they might be in a different position, but we're confident that won't happen. If Philip's prepared to pay four pounds for it, it must be worth more," the source said.
Green, owner of Britain's Bhs department stores and fashion chains Top Shop and Dorothy Perkins, said he had not yet made a decision on whether to stay in the running. His first two bid proposals were rejected by the M&S board as too low.
Comments
Comments are closed.