In a statement Green said: “Contrary to recent press speculation, informal guidance has not been sought from the Office of Fair Trading in relation to a possible offer by Revival (the bid company) for M&S.” An inquiry would delay negotiations by up to six months and force Green to refinance the £9bn bid with his financial backers.
The entrepreneur's initial bid was declined last week by the M&S board, and he has met with his investment advisers to consider his options and review the proposal. Any new bid may include an all-cash offer valuing M&S at £10bn, as well as raising the share offer to shareholders. City analysts believe that at least 400p a share must be offered for the take over proposal to be taken seriously by the M&S board and analysts.
Green will be speaking to three US investors who currently control 18 per cent of M&S's shares. Shareholders are divided over a higher all-cash offer versus a cash and equity mix in the Revival vehicle. A spokesman for Berwin Dolphin, an institutional investor in M&S, said: “I don’t see an all-cash offer being particularly useful because people want a share in the upside.” However, some shareholders are concerned about the valuation of the equity vehicle and are cautious about the city analyts' inability in deciding its value.
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