KKR may join M&S bid battle

AMERICAN venture capital house Kohlberg Kravis Roberts could be about to launch a takeover bid to rival that tabled yesterday by Bhs boss Philip Green.

Shares in M&S soared to an 18-month high of 366p earlier this week after Green said he would be approaching M&S's board. But the sacking of chief executive Roger Homes, replaced by veteran retailer Stuart Rose, plus the unveiling of Green's terms sent them backward yesterday.

They lifted 1 1/2p TO 357 1/2p this afternoon as the market picked up talk that KKR, advised by City lawyers Herbert Smith, could be about to enter the fray. KKR did battle with Green in the tortuous takeover scuffle for supermarkets group Safeway before both were trumped by Morrisons.

The City blew a raspberry at Green's M&S takeover pretensions after he announced an offer of between 290p and 310p in cash plus a 25% stake in a takeover vehicle Revival with a putative value of up to another 100p per M&S share, valuing the High Street chain at £9bn.

City analysts reckon the real value of that offer is probably only 330p in total, valuing M&S at less than £7.5bn.

A survey of leading fund manager holders of M&S stock found none of them supporting Green's offer, variously described as ' disappointing' and 'unlikely to succeed'.

The M&S board had earlier rejected the terms, with Rose calling Green's offer ' underwhelming'.

Green, whose privately-owned retail empire stretches from Bhs to Top Shop, is said to be mulling his next move. Though unexcited by yesterday's opening salvo, many believe his initial shot across M&S's bows still leaves him plenty of room for manoeuvre.

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