M&S reject takeover bid

Marks & Spencer today rejected the latest £9.1 billion takeover bid from retail billionaire Philip Green. The board led by chief executive Stuart Rose said Mr Green's 400p per share bid "continues to undervalue the group and its prospects significantly".

The Bhs tycoon reacted angrily, accusing the group of acting in an "unbusinesslike" manner. He refused to rule himself out of the bid battle and is expected to try to persuade M&S shareholders to put pressure on the board to at least open a dialogue with him.

M&S shares fell 5.25p to 363p as the market decided that Mr Green's chances of success have fallen. He has made it clear he will not

increase his offer and, under City takeover rules, will have to stick to that decision.

Mr Rose will outline his plans for M&S on Monday. Today the group said they would "include important new information in respect of the operations and strategy of M&S".

Analysts expect Mr Rose to tighten contracts with suppliers, cut costs and probably cut back several lines.

In its rejection of the bid M&S also asked Mr Green to explain in more detail the ownership and financing of his bid vehicle Revival.