British retailer Marks & Spencer has rejected a takeover proposal by entrepreneur Philip Green, saying it significantly undervalues the group.
Green this morning launched a takeover battle for M&S, unveiling a war chest of £9 billion sterling to fund a bid.
The billionaire owner of fashion retailers Bhs and Arcadia said he was prepared to pay 290-310 pence a share in cash plus a 25% interest in the equity of his investment vehicle Revival Acquisitions. But he said any firm offer for the group was subject to the approval of its board.
Marks and Spencer has been left looking vulnerable after seeing a recovery falter over the past 12 months amid fierce competition from smaller fashion retailers and larger supermarket chains.
But the retailer's new management appears unlikely to give in without a fight. On Monday Marks and Spencer announced a sweeping boardroom clear-out which saw both its chief executive and chairman removed with immediate effect - a move seen as an attempt to ward off Green's advances.
New chief executive Stuart Rose, a former chief executive of Green's Arcadia group, quickly insisted that selling up was not an option.
