M&S: Mystery share buying

SOMEBODY knew something. Philip Green announced his bid plan at 4:01pm. But Marks & Spencer shares started rocketing nearly two hours before as well-informed people bought in anticipation.

Dealing suddenly took off around 2.15pm, after those useful City lunches. Millions of shares changed hands in increasingly frantic buying, with prices rising from 290p to 323p before the announcement. One lucky punter has already made £1.1m.

Green dismissed any suggestion his bid party was behind the trading. 'We have no shares at all,' he said, adding he had 'no idea' who had been buying.

Those who bought merely on rumour did nothing wrong. But clearly someone with advance inside knowledge started the ball rolling. Insider trading is a criminal offence punishable by up to seven years in prison.

The Financial Services Authority will not confirm it has launched an investigation. Since taking over stock market regulation in December 2001 it has yet to launch a single criminal prosecution for insider trading.

Green has every incentive to find the 'traitor' in his entourage.

When he briefly tilted at Marks just over four years ago, the company attacked his wife for buying 9.5m shares in the preceding days even though, after some confusion, the Green camp explained that she was legitimately acting as part of the bid party.

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