Morrisons shares were driven to 211.25p yesterday amid rumours that retail specialist Allan Leighton will either front a bid for the company or step in as the new ceo.

Shareholders welcomed the rise since the group’s shares have fallen by 20 per cent in the last year, prompting two profit warnings. But interest fell during the session and Morrisons ended up with only a 25p increase, with shares left at 205p.

Leighton has previously been associated with a bid for Sainsbury’s and the word on the floor is he has been encouraging Brandes to back a buyout. The US fund manager is a 9.3 per cent shareholder in Morrisons.

However, this will rely on him getting the green light from Sir Ken Morrison, the company chairman, head of the family holding an 18 per cent stake in the group.

Others believe the ceo proposal more likely with the current chief Bob Stott due to be replaced in the next couple of years,

Traders are also expecting the Baugur consortium to make a formal bid for Somerfield by the end of the week. Shares are tipped to rise to as much as 215p but despite the excitement of an initial boost yesterday they finished down 0.25p at 196.5p.

Meanwhile, Marks and Spencer’s board is split over the decision to keep Paul Myners as chairman. Myners stepped up last May to fend off Philip Green’s £9.1bn proposal.

Myners, the former head of Gartmore, is said to be happy to stay on but head of the nominations committee and senior independent non-executive, Kevin Lomax, is pushing for a thorough investigation of all possible candidates.

With three other chairmanships, Myners may not be the ideal choice, some shareholders have warned. But with the pressure to present a new chairman by next July’s AGM, the board will have to step up its search for a more suitable candidate.

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