South African investment adviser Paulsmeier Inc has walked away from backing a proposed managment buy-out of Marks & Spencer, insisting it never planned a bid itself. The company, fronted by financier Mark Paulsmeier, issued a statement after the Takeover Panel intervened at M&S's request. Paulsmeier said it "is not a financier of takeover bid or other transactions. Its role is limited to business facilitation: bringing together those with ideas for business opportunities with providers of venture capital or corporate expertise.

"The group is not leading, nor contemplating making, any takeover bid for Marks & Spencer and would not wish to be part of any such bid."The group has been involved in the facilitation of a possible management buy out for Marks & Spencer but, in the light of developments, has decided to disassociate itself from any transaction involving a bid for the company and will not have any further involvement with this project."

M&S's share price jumped earlier this week when Paulsmeier said it had been working on plans for an MBO since last summer, claiming to have been approached by an M&S senior executive in the wake of Bhs and Arcadia owner Philip Green's ultimately unsuccessful bid overture.