Small investors fume at M&S

CONFUSED small shareholders were left trailing as Marks & Spencer's plan to return £2bn to investors was swept through with a majority of more than 99%. Several expressed fears that they would lose out, despite assurances from chairman Luc Vandevelde at an egm to vote on the scheme.

Michael Powell, 67, accused Vandevelde of misleading people. 'You have caused a lot of resentment,' he said.

A shrunken M&S, minus its European and US stores, raised the surplus cash from securitisation and sale and leaseback of property, and by taking on more debt. For every 21 shares held, 17 new shares and 21 B shares, redeemable for 70p each, will be issued.

Vandevelde insisted: 'It should improve the potential rate of growth in earnings in future.' But some investors were uneasy that the number of shares they own will fall, despite the prospect of a cheque in the post.

Unusually, the egm was held at a hotel in west London, in contrast to the annual meeting at the Royal Festival Hall. Marks said: 'It was all we could get at such short notice.'