Big investors hedging bets

SO, Marks & Spencer has decided to fight fire with fire. Courageous as the board's decision is, investors are entitled to question its wisdom.

You can be brave and you can be foolish, both at the same time.

This move certainly has the ring of recklessness about it. To not engage in dialogue with Philip Green, after he's made an offer that most neutral observers agree is fair, must bring into question the directors' duty to shareholders.

Presumably, they have based their action on what they know is coming from Stuart Rose, the new M&S chief executive, when he presents his strategy review on Monday.

It's to be hoped so. The board has taken a calculated gamble: Green says his 400p offer is 'final'; their man is saying: 'Trust me, I can take your company's shares to 400p without Philip Green.'

Some heavyweight shareholders are hedging their bets.

Everything now hinges on Monday and Rose's presentation. It is turning into a straight duel, with each side looking down the barrels of the other's guns.

Rose's board is behind him. But they should realise, ultimately, the fate of M&S is not up to them.

With Green pacing up and down, waving a sign saying '400p', the market will decide. Roll on Monday.