Bid target Marks and Spencer says it is planning to return £2.3 billion to shareholders. The company this morning set out a range of measures to win shareholder loyalty in the face of a bid from tycoon Philip Green.
The cash return is equivalent to 100p a share. M&S, Britain's leading clothing retailer, said it would also buy the Per Una fashion brand for £125m and sell its financial services division to HSBC for £762m.
The firm has revalued its property at £3.6 billion but does not intend to sell any.
Marks & Spencer also released a trading update which showed like-for-like sales down 2.8% in its first quarter.
M&S is trying to convince investors that its own turnaround plan will boost the value of the firm beyond Green's £9.1 billion or 400p a share offer, which M&S says is inadequate.
M&S has dismissed Green's advances and the entrepreneur's last chance of clinching victory is for shareholders to side with him and put pressure on the retailer to begin talks. Green has said he will know within 48 hours whether M&S shareholders are backing the company or him.
