Marks & Spencer Plc plans to post terms of a 2.3 billion pounds ($4.1 billion) offer to buy back stock on Tuesday, but trading data could leave investors wondering whether they were wise to reject a take-over approach from billionaire Philip Green.
A spokesman for the company said it was a regulatory requirement to give an update on trading along with the tender offer to purchase its shares. Analysts have said the figures could disappoint, especially in food, compared with rivals Tesco and Next. Market rumours prompted Marks & Spencer to deny on September 9 that it would issue a profit warning.
The purchase of stock was one of the inducements Chief Executive Stuart Rose used to gain shareholder support after joining in May to thwart Green, who pulled out of the running in July. Green withdrew his 400 pence a share for M&S in July.
The spokesman declined to comment further on the tender offer. But a source close to the company said a price within a range of 350-to-380 pence would give shareholders a premium while letting M&S buy back the stock at an affordable level.
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