Philip Green, the billionaire entrepreneur who owns the Arcadia and Bhs store groups, said he is considering a cash and shares offer for Marks & Spencer. But, Green also warned a fevered City a bid might not materialise.
M&S shares closed yesterday, up 18.76 per cent on the news, having already soared during the day amid bid rumours.
Last year Green was caught up in the bidding war for supermarket chain Safeway, although he pulled out before the final stages were played out. He is expected to approach the M&S board in the next few days.
"Revival intends to approach the board of Marks & Spencer in the next few days with its proposal and to seek a recommendation," said a statement from Revival Acquisitions, the bid vehicle owned by the Green family.
"Any proposal would involve a mixture of cash and shares in a new company which would seek a listing."
Analysts are already making comparisons between the work Green has put into revitalising Bhs, which was a pretty tired British high street brand five years ago, and the job in hand at M&S.
However, Revival also stressed: "There can be no assurance that any offer will be made."
Any bid would doubtless interest the competition authorities, as M&S has 11 per cent of the UK clothing market and Green could account for up to 10 per cent.
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