£2 billion bribe to block Green bid for M&S

Shareholders in Marks & Spencer are being offered a £2.3billion windfall to reject the takeover bid from Philip Green.

M&S chief executive Stuart Rose said the group will hand back 100p a share to its 350,000 shareholders if they support his plans.

His offer came as he unveiled his vision to restore the fortunes of Britain's biggest clothing retailer. "We will give Marks& Spencer back to its customers," he pledged.

Mr Rose launched a scathing assault on the company's past performance and its management team, slamming their "lack of "leadership" and lack of confidence in the M&S brand. The stores had become too cluttered, with too many brands and too many conflicting products, he said. Ranges will be slimmed down and the stores smartened up.

Mr Rose promised a return to basics at the group, with concentration on its
traditional reputation for quality clothing that offers value for money. He also unveiled a package of measures which he says will slash costs by £250 million next year and £320million the following year. But his masterplan was accompanied by news that current trading at the group remains dire, with a 2.8 per cent fall in underlying sales over the first quarter. Mr Rose said he was confident his plans would deliver value "significantly in excess of 400p a share" - the value of the proposed £9.1billion offer from Bhs billionaire Mr Green.

Pointing out that as many as 11 million people visit an M&S store every week, Mr Rose said: "Our brand is one

of the strongest in the UK and is trusted by customers. However, it is also seen as formal, middle class and boring." There was no immediate response from Mr Green but, along with shareholders, he will spend today going through the small print of the Rose strategy.