Green quizzed over Woolworths bid

THE Takeover Panel has written to retail tycoon Philip Green after a wave of rumours swept the stock market that the owner of the Bhs retail chain planned to make a bid for High Street rival Woolworths.

But a source close to Bhs told Financial Mail that Green had no interest in making an offer in the near future. 'Even if he made a move now he couldn't possibly take control until October. By then Woolworths would be committed to its Christmas range,' said the source. 'Why would anyone buy a company which is about to go into its most important sales season when they can't change anything?'

The source did not rule out the possibility of Green taking a fresh look at Woolworths in the New Year once its Christmas sales figures were made public.

Green made a fortune after buying and turning round Bhs, raising profits eight-fold in less than two years and increasing sales of womenswear by 20%. Shares in Woolies jumped by more than a fifth last week amid reports that Green was planning a fresh approach to buy the pick 'n' mix chain.

The Panel, the City's mergers and acquisitions watchdog, is understood to have written to the Bhs boss last week, asking him to make clear his intentions. Green held talks over several weeks with Woolworths chief executive Gerald Corbett during May and June over a possible merger, but the discussions ended in acrimony.

Woolworths shares plunged after the talks ended - slumping to 23p - on worries about poor trading. Then, as rumours circulated in the dealing rooms that Green could be about to renew his interest, they bounced back, closing on Friday at 27p, valuing the group at £377m.

The Takeover Panel refused to comment on the specific case of Woolworths and Bhs but said that its code on takeovers was activated whenever there were untoward share price movements that could be related to a possible bid.

Green also declined to comment.