Philip
Green has issued a formal statement confirming that he has had no guidance from
the Office of Fair Trading on whether a takeover of Marks & Spencer would
trigger a competition inquiry. M&S appoints finance director
Marks & Spencer joined the ranks of retailers announcing board level changes on Monday, appointing Ian Dyson as group finance director. Dyson replaces Alison Reed, who will leave M&S at the end of April. He is moving from leisure group Rank.
M&S chief executive Stuart Rose said: "Ian comes from a highly competitive sector, which has seen enormous change in recent years. His track record at Rank has demonstrated his ability to deliver in that environment and his experience in restructuring businesses will be important in re-building the fortunes of Marks & Spencer." He is young and energetic, and with this appointment we are building the team for the long-term."
Rose added: "I would like to thank Alison for her substantial contribution over the last twenty years. She leaves with our best wishes for the future."Dyson said: "I am delighted to be joining Marks & Spencer and look forward to the challenge."
www.marksandspencer.com
14 March 2005
M&S to wage price cuts
Stuart Rose, chief executive of Marks & Spencer, is planning an £85m price-cutting campaign to target Next, its high-street rival. M&S's move to gear up for a price war comes as retailers report dismal high-street trading in recent weeks: with shoppers shunning their stores. A survey by the investment bank Goldman Sachs shows Rose has radically repositioned M&S's pricing, and the analysts expect further price cuts this year.
www.marksandspencer.com
28 February 2005
Paulsmeier Backs Out Of M&S Big
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.
www.marksandspencer.com
24 February 2005
M&S chairman steps down
The chairman of struggling high-street retailer Marks & Spencer, Luc Vandevelde, has chosen to step down after a four-year tenure with the firm. In his resignation he cited "personal commitments" to the family of Paul Louis Halley. Halley, who was killed in a plane crash last year, was one of the biggest shareholders in the Carrefour group. Vandevelde joined the Carrefour board following the accident.
Although M&S enjoyed a recovery period from 2000, when Vandevelde took control of the reigns at the company, weak fourth quarter sales caused M&S shared to plummet. This in turn fuelled pressure for Vandevelde to resign. Despite overall profits remaining in line with expectations, overall sales figures are down, and fears proliferate that the recovery period has come to a halt.
www.marksandspencer.com
7 February 2005
Good news for M&S
This year the British high-street retailer Marks & Spencer will may win a case at the European Court of Justice concerning tax issues. Winning the case could result in tax reforms for the majority of European countries. Current UK law states that tax losses from overseas subsidiaries may not be offset by UK profits. M&S argues that this goes against EU law.
"We are pleased the case was sent by the High Court to the Court of Justice. We await the court's decision, which we expect to be made later this year," said an M&S spokesperson. The European Federation of Accountants believe that, in case of a victory, this case may result in European countries facing large claims of tax relief on losses suffered in the past.
1 February 2005
M&S Criticised For New Collection
Marks & Spencer's new spring/summer collection - the first ranges over which new chief executive Stuart rose has had control - were severely criticised yesterday by on of the City's leading analysts, according to The Telegraph. In a report to clients, Tony Shiret of Credit Suisse First Boston attacked the company's "quite shoddy" women's t-shirts and "tacky" men's formal trousers, and called its new Limited Collection "a mess."
He concluded: "Our main view remains that no real progress is being made and that the financial engineering of the business continues to expose the weakness of M&S's existing positioning." Despite the fact that the Marble Arch store was being visited by senior executives, including marketing director Steve Sharp, Mr Shiret said that the store standards were disappointing. "Execution standards were very weak again, particularly on product labelling, point-of-sale material and size availability."
Mr Shiret further stated that the Per Una range by George Davies was 'the one indisputably strong area of the store, which was being heavily shopped. We thought the layout and range were excellent." Referring to the Limited Collection, he added: "This was a mess in our opinion. There were few signature products and the promotion/display were terrible. Prices were also too high."
M&S declined to comment on the report.
www.marksandspencer.com
22 January 2005
No Second M&S Bid By Philip Green
Bhs and Arcadia owner Philip Green is unlikely to make a new takeover approach for Marks & Spencer, despite being free to move again under City rules. The six-month period under which potential bidders whose approaches have been formally rejected or withdrawn are barred by Takeover Panel rules from a new approach has expired this weekend.
Green withdrew his £9.1bn offer for M&S in July after shareholders backed the new management team led by chief executive Stuart Rose, parachuted in by the M&S board to lead its defence against Green. Despite continued sales problems, with Rose insisting his recovery strategy needs time to have an impact, the M&S share price has remained relatively strong as the City weighs up the prospects of a new bid.
However, Green apparently believes there are tougher times ahead for M&S, and may hope for a warmer welcome from the M&S board if there is still no sign of a recovery a year or more down the line. The Financial Times quotes a source close Green saying on Friday: "He is not going to bid for this company. He will want it to fail before he does anything. Rose has only had one bad Christmas so far, so he won't be moving on it this year."
www.marksandspencer.com
17 January 2005
M&S opts for discounting
Marks & Spencer on Sunday launched itw biggest sales drive in its 120-year history in an attempt to lure shoppers from high-street rivals and kickstart a critical year for Stuart Rose, the chief executive.
M&S is widely thought to have endured dismal trading in the past few weeks, with one retail analyst suggesting like-for-like sales at the company have declined by at least 10 per cent in December. The sale will include some of the company's top clothing lines, such as Per Una and Limited Collection, and follows two one-off discount days held in recent weeks.
www.marksandspencer.com
28 December 2004
M&S Continues Pre-Christmas Web Sale
Marks & Spencer has continued its second one-day pre-Christmas sale into Friday for online customers after website problems frustrated many shoppers. M&S launched the sale on Thursday, discounting 20 per cent of thousands of products for the second time in three weeks. The sale includes many seasonal clothing, food, homeware and gifts. However, the website was down for several hours during the middle of the day, and transactions were very slow at other times.
The site offered an apology to customers, and is now advising: "For all online customers who may have had problems shopping online Thursday 2 December, we've extended our Christmas Spectacular Offers exclusively online until 2pm Friday 3 December."
www.marksandspencer.com
3 December 2004
M&S management shakeout
Hot on the heals of news that trading conditions have worsened for high-street retailer, Marks & Spencer, the company announced the shakeout of its top management. Finance Director Alison Reed is to leave the company next year, and a further three executive directors are to take their leave as soon as Chief Executive Stuart Rose takes hands on control of M&S. He will be directly responsible for retailing, merchandising and buying.
Rose revealed that he believed in a small board, as he halved the number of executive directors. The diminished size allows for faster decision making and greater flexibility, which is what the ailing company desperately needs. He added that M&S will be going "back to basics", with a new maternity line and ranges for petite and larger women. This will entail a revamping of the store interiors. Four new stores will be opening in a few days' time.
The company has not issued a profit warning, and according to Rose, it is still too early to predict what the Christmas period will bring in terms of turnover.
www.marksandspencer.com
11 November 2004
M&S To Cut Per Una Due Range
M&S chief executive Stuart Rose will signal the end of the store's flirtation with young fashion when he delivers a recovery strategy to the City on Tuesday.
Per Una Due, one of the sub-brands placed 'under evaluation' when Rose arrived last May, will be axed, joining other brands that have already been abandoned, such as the David Beckham boys' range. Abandoning teenagers means M&S will no longer compete in the under-30s market with chains such as Topshop, which is owned by arch-rival Philip Green, and Zara.
www.marksandspencer.com
8 November 2004
M&S Insists Green's Bid Undervalued Company
Marks & Spencer chairman Paul Myners has again insisted that this summer's potential bid from Philip Green undervalued the high street retailer. Myners was speaking to enable shareholders to vote on the retailer's £2.3bn share buyback, designed to return proceeds from the sale of the M&S Money business, one of the initiatives implemented by new chief executive Stuart Rose.
M&S shareholders voted 99.56 per cent in favour of the buyback plan. A 'yes' vote does not commit then to sell all or any shares, with some analysts expecting more institutional shareholders to take up the offer, while smaller investors are more likely to hold onto their stake to give Rose's strategy time to have an impact. The final take-up will set the exact price.
Responding to criticism that the buyback is priced in a range of 332p to 380p a share, below the final 400p a share Bhs and Arcadia owner Green was willing to offer, Myners said: "A potential offer for all the company's shares is one thing. A move to repurchase a significant proportion of equity, leaving the rest in your hands, is entirely different.
"As far as the possible bid was concerned, the board concluded that the proposal of no more than 400p a share was a significant undervaluation of your business." He said the rejection of Green's potential offer "was not a promise to return the share price to 400p in a matter of months. No responsible board could make such a promise. The rejection was about the value of your investment over the longer term - as our plan begins to bear fruit."
www.marksandspencer.com
22 October 2004
M&S Acquires Per Una
In a deal with George Davies, Marks & spencer is acquiring the Per Una business in a £125m deal to bring the fashion brand in house. Davies created the upmarket Per Una fashion brand exclusively for M&S, but until now it has been a seperate business, supplying the retailer under a licence agreement.
With Per Una one of the best performing ranges in M&S's womenswear offer, chief executive Stuart Rose indicated in his strategy for the recovery of the business that he would seek to bring it under direct ownership. The terms of M&S's agreement with Davies was one of the issues Bhs and Arcadia owner Philip Green wanted clarifying as a condition of his £9bn potential offer for the retailer this summer.
M&S said the £125m being paid to Davies includes "the company, the brand and people". Davies will remain as chief executive of Per Una for at least two years and will continue to be responsible for the business.
www.marksandspencer.com
6 October 2004
M&S Loses Star Staff
Marks & Spencer has lost two of its star employees of its Limited Collection womenswear team, one of the few areas of its business that is thought to be doing well.
Margaret McDonald, who was the head buyer for the Limited Collection, has quit to return to her former employer Gap, the US clothing retailer. Zoe Matthews, a Limited buyer, has also left M&S. Their exit comes just a week before former Asda executive Kate Bostock takes up the reins as the new director of womenswear.
www.marksandspencer.com
3 October 2004
M&S Report Downturn Trading
Marks & Spencer will report a downturn in trading this week, just as it unveils plans to buy back GBP2.3bn of shares from its investors. According to leaked industry figures, M&S is continuing haemorrhage market share by both volume and value in clothing. Womenswear, traditionally the chain's strength, has been particularly hard hit.
www.marksandspencer.com
20 September 2004
M&S To Terminate Beckham Contract
Marks & Spencer is expected to terminate its contract with David Beckham earlier than expected as part of its efforts to rationalise its range of sub-brands, reported The Financial Times. The Beckham deal, launched to much fanfare in spring 2002, had been set to run into the spring, but it is now thought that M&S plans to axe the England captain and Real Madrid star's clothing range contract within the next month.
This means that the autumn range of DB07, Beckham's fourth collection, will be his last, with the retailer dropping plans for a spring offering in 2005. Tony Shiret, analyst at CSFB, said the DB07 range was an important component of M&S's children's collection, which has struggled for the past three years and was coming under fierce competition from Asda's cheaper George clothing lines.
"I think it was one of the only things that worked in the children's range," he told the FT, noting though that since Beckham's move to Real Madrid, "in terms of celebrity he has diminished a bit here."
www.marksandspencer.com
16 September 2004
Office Of Fair Trading Launches M&S Card Probe
The Office of Fair Trading has launched a formal competition investigation into HSBC's GBP763m takeover of Marks & Spencer's store-card business. The probe will be a blow to HSBC, which had hoped that it might escape the full scrutiny of the competition watchdog.
www.marksandspencer.com
13 September 2004
M&S To Change Refund Policy
Marks & Spencer is to abandon its 50-year-old 'easy refund' policy - risking the wrath of customers - in a struggle to cut costs after seeing off the GBP 9.1bn takeover bid from Philip Green. Stuart Rose, chief executive, is to end the company's long-standing policy of changing garments or giving refunds on goods regardless of when they were purchased. M&S traditionalists see it as part of the company's heritage, but it is regarded by competitors and industry experts as absurdly generous and open to abuse. M&S will now require goods to be returned for a refund within three months.
www.marksandspencer.com
30 August 2004
Paul Myners To Remain M&S Chairman
Against speculation, Paul Myners is to remain as chairman of Marks & Spencer for the time being. Myners took over the role on an interim basis after the departure of Luc Vandevelde in May, and in partnership with new chief executive Stuart Rose saw off the takeover approach from Bhs and Arcadia owner Philip Green.
His reputation and contacts in the City, combined with Rose's retail experience, has been seen as a 'dream team' in some quarters as M&S works to reverse its sales decline. M&S said Myners may stay in the role until the annual meeting in July 2005, with the process of appointing a permanent chairman continuing in the meantime.
Kevin Lomax, the senior independent M&S director, said: "Marks & Spencer is fortunate that Paul has agreed to remain as chairman. The board believes Paul has done an extremely good job during a difficult period and that the company now needs a period of stability in order to focus on the day to day running of the business.
"We are grateful that Paul has freed up more time in order to be able to continue for longer than he had originally planned.' Myners will be stepping down from the Board of mmO2 and as a trustee of the Charities Aid Foundation in order to give sufficient time to his role at M&S.
www.marksandspencer.com
10 August 2004
M&S To Drop Beckham's Range
David Beckham, the England football captain, is to be dropped by Marks & Spencer as part of the clearout by its new chief executive, Stuart Rose. Beckham's DB07 childrenswear range is to go, with sportswear brand View From and menswear label Blue Harbour also under threat.
www.marksandspencer.com
20 July 2004
What's Next For M&S?
Marks & Spencer boss Stuart Rose has admitted that the high street giant could be overtaken by Next as Britain's biggest clothing retailer within four years. The M&S chief executive admitted he was not banking on any increases in sales. He said: "The plan we have put forward does not have any growth built into it. The days of four per cent or five per cent are behind us."
www.marksandspencer.com
20 July 2004
Green Ends M&S Bid Controversy
Philip Green has dropped his plans to bid for Marks & Spencer after Stuart Rose convinced enough shareholders it can turn the company around. Green, owner of Bhs and Arcadia, conceded in a statement on Wednesday evening that he "will not gain the cooperation of the board" in time to meet the August 6 deadline for a formal bid set by the Takeover Panel.
Through his bid company Revival Acquisitions, Green made a final offer of 400p-a-share last week, valuing M&S at GBP9.1bn. Throughout the process, Green, has insisted no formal offer would be forthcoming without the recommendation of the M&S board.
Despite pressure from some major shareholders, including US equity fund Brandes, to open the books to Revival, the M&S board has remained firm in its view that the price offered undervalues the business. A statement form the M&S board said the company "is pleased that a period of uncertainty has come to an end. As a board, we are focused on improving the performance of Marks & Spencer and delivering the long term value that we have identified for the benefit of our shareholders."
Green has left a lasting mark on the UK's best known high street retailer. His initial approach at the end of May led directly to the appointment of Rose, who was seen as a strong candidate to lead a recovery at M&S by the City.
www.marksandspencer.com
16 July 2004
Green drops bid for M&S
Retail tycoon Philip Green last night dramatically dropped his £9.1bn bid for Marks & Spencer, blaming the retailer's board for blocking a formal offer.
Mr Green walked away after nearly 3,000 small shareholders offered almost total support to the board at the M&S annual meeting in London. But he vowed to take customers from M&S and "breathe down their necks in every high street in the UK" through his companies Bhs, Top Shop, and others. "We will see who is the best retailer; there is only one vote that counts and that is the customers."
It is the second time Mr Green has tried and failed to win control of M&S. His bid proposal - which emerged six weeks ago - had turned into one of the dirtiest battles in recent City history.
A spokesman for Mr Rose said the board was not celebrating a victory. "The hard work begins now. We have got to deliver."
On Monday Mr Rose had spelt out a plan to return £2.3bn to shareholders
- worth £1 per share - and announced the sale of the retailer's financial
services offshoot to HSBC. He also plans to buy the Per Una range of women's
fashion from its creator George Davies and make savings of up to £320m
a year.
www.marksandspencer.com
14 July 2004
New Marketing Campaign at M&S
Marks & spencer is launching a new marketing campaign, 'Your M&S', which will focus on promoting the core brand. Executive Stuart Rose is to focus firmly on the core brand, which M&S said is one of the strongest in the UK and is trusted by customers, but seen as 'formal, middle class and boring'.
All sub-brands are being reviewed to ensure they add value and enhance the core M&S brand. The new marketing campaign, 'Your M&S', will launch in September "to reconnect with our core customers and remind them that we sell top quality product at good prices."
In clothing the emphasis will be on brand values such as classic, stylish, superior cut, quality material and value for money. In Food, 'Your M&S' will emphasise quality, freshness, desirability and indulgence.
www.marksandspencer.com
13 July 2004
Battle For M&S May Be Costly Cash Injection
Marks & Spencer's pension trustees have dropped a bombshell into the battle for control of the company by warning Philip Green may have to inject hundreds of millions of pounds into the pension fund if his bid for M&S Succeeds.
In a statement published on Saturday, the trustees set out five options for filling the fund's GBP185m current deficit if M&S were acquired by a highly leveraged buyer.
The most extreme demand - for an investment solely in safe but low-return bonds - would cost Green an extra GBP785m a year over three years. Analysts said the trustees' statement could be the beginning of a "poison pill" that could torpedo Green's GBP9.1 billion takeover proposal for the company. If Green walks, M&S's share price could plunge.
www.marksandspencer.com
12 July 2004
M&S Executive Cleared From Insider Dealing
The Financial Services Authority has cleared Stuart Rose of any involvement in insider share dealing in the run-up to the announcement of Philip Green's bid for the company.
Rose was questioned by the FSA's Enforcement Division after a formal inquiry into M&S share movements before Green confimed his interest Rose has confirmed that he bought 100,000 shares before being approached first by Green, and subsequently by M&S, in May, but has maintained he had no knowledge of Green's plans when he made the purchase.
The FSA said "On the basis of the facts the FSA has established, there are no ongoing inquiries in respect of Mr Stuart Rose." The all-clear will be a welcome boost for Rose ahead of his presentation next week setting out his strategy for M&S's recovery.
With M&S having rejected the latest approach from Green's bid vehicle Revival Acquistions, the spotlight will be fully on Rose as he tries to persuade shareholders that he can deliver value above the 400p-a-share offered by Revival.
www.marksandspencer.com
9 July 2004
M&S Not Budging For Green Offer
Marks & Spencer has made it clear its will not change its stance on the GBP8.4bn potential offer for the business from entrepreneur Philip Green.
Despite increased pressure from some investors who believe M&S should co-operate more with Bhs and Arcadia owner Green, M&S has issued a curt response to Green's bid vehicle Revival Acquisitions' latest request for information on any deficit in the company's pension fund.
A statement from M&S said: "The board of Marks & Spencer would like to reiterate that they rejected Revival's proposal of not less than 370p per share made on June 16 because they believe it significantly undervalued the group and its prospects. It has, therefore, not provided any of the information requested by Revival."
www.marksandspencer.com
7 July 2004
New M&S Bid From Green Imminent
A new bid for Marks & Spencer could come from Philip Green, the Bhs and
Arcadia owner, by the end of the week. Following a letter from Green's bid vehicle
revival Acquisition last week, David Norgrove, chair of pension trustees, will
meet committee members to discuss Mr Green's requests for information from the
pension fund.
Green wants to know the size of M&S's pension deficit and how much a bidder
would be expected to have to pay up front in order to ensure the fund can meet
its obligations. A spokesman for the M&S fund trustees told The Times: "The
trustees will meet in the next few days and, while there is no timetable, a
response could be made by the end of the week."
Meanwhile, M&S chief executive Stuart Rose is putting the finishing touches on the details of his strategy to generate a sales recovery at M&S, due to be revealed at the start of next week. The issue for Green is whether to wait to gauge City reaction to that announcement, or to make his next move first. Green's most recent conditional bid approach, valuing the business at GBP8.4bn, was quickly rejected by the M&S board.
However, there are indications that major institutional shareholders, including US fund Brandes, expect the board to give stronger consideration to any increased bid. However, M&S is reported to to be considering cash to shareholders through a sale and leaseback programme of property. That might be enough to persuade shareholders to give Rose the time he needs to make the recovery strategy pay off.
www.marksandspencer.com
5 July 2004
M&S CEO Will Counteract Bids
Marks & Spencer chief executive Stuart Rose is hoping to dramatically turn the tables on bidder Philip Green by offering shareholders a GBP750m sweetener when he unveils his rescue plans for the group next week.
More cash could be made available later as Rose's recovery plan unfolds, perhaps billions of pounds over several years. The initial sweetener cash from M&S, in the form of a special dividend or share buy-back, will come from the sale and leaseback of dozens of M&S properties.
www.marksandspencer.com
5 July 2004
M&S Share Inquiry Continues
Amidst the take over bids and new shares dilemma, Marks & Spencer Group boss Stuart Rose told BBC radio he would quit if he had done anything wrong by buying shares in the high street retailer last month. "If I had done something wrong I would step down from this company and I will fully, fully co-operate with the FSA (Financial Services Authority) when I see them."
MChairman Paul Myners told The Times there was no question of Mr Rose stepping aside while the FSA examined M&S share deals. The FSA confirmed last week that it had found some evidence of insider dealing in M&S shares and that it was widening its inquiries.
The watchdog has the power to trawl through the personal emails and phone calls of those involved in its investigations. Shares in M&S jumped 7 per cent in the two days before Bhs owner Philip Green announced on May 27 that he was considering GBP8 billion (USD21 billion) bid for M&S.
The FSA is scrutinising Mr Rose's purchase of 100,000 shares three weeks before the bid became public. He made the investment after receiving a phone call inviting him to a meeting at which Mr Green disclosed that he was preparing a bid. Mr Rose is looking at a paper profit of GBP84,000.
Mr Myners said that Mr Rose, who was appointed in May to help to fight off the Bhs bid, had done nothing wrong and that his company would do everything it could to help the watchdog carry out its investigation.
www.marksandspencer.com
30 June 2004
Speculation Continues Over M&S Shares
The board of Marks & Spencer is bracing itself for fresh allegations this weekend about share-trading in the retail giant, which is the target of an GBP8.3 billion bid by the BHS entrepreneur Philip Green.
According to City sources, the allegations relate to when chief executive, Stuart Rose first knew about Green's takeover bid, and focus on a conversation at the Chelsea Flower Show on 24 May. Rose was appointed chief executive of M&S the weekend after the alleged conversation.
www.marksandspencer.com
28 June 2004
Green Approaches US Investors For M&S
Philip Green, reportedly, is persuading American investors to back his offer for Marks & Spencer. Green has been talking to M&S' biggest shareholder Brandes, in an attempt to persuade it to sell its 11.8 per cent stake or pledge an 'irrevocable' acceptance to his offer.
Some expect Green could win its support as early as today. He could then re-approach M&S with a new bid proposal. Marks chief executive Stuart Rose firmly rebuffed Green's indicative offer of 'not less than' 370p per share.
www.marksandspencer.com
25 June 2004
M&S Chief Executive Bought Shares Before Bid
Newly appointed M&S chief executive Stuart Rose bought 100,000 shares in Marks & Spencer prior to being informed of Philip Green's plans for a bid for the group or being offered his current role.
The Financial Times reports that Rose acquired the stake on May 7, when the price was below 300p-a-share. That was five days before he was approached by Bhs and Arcadia owner Green, who hoped Rose would take his bid for M&S through Green's company Revival Acquisitions.
Two weeks later, Rose agreed to take on the role of M&S chief executive in order to defend the business against the bid. Rose told the FT: "I have been a shareholder in Marks and Spencer for a number of years. I have not traded any M&S shares since becoming aware of Green's intentions on May 12."
The M&S board has now rejected two bid overtures from Green, the most recent a 370p-a-share all cash offer. Green is reported to be sounding out major M&S shareholders in the US before deciding his next move. US investment fund Brandes holds just under 12 per cent of M&S shares.
www.marksandspencer.com
22 June 2004
Vittorio Radice To Leave M&S
Vittorio Radice, Marks & Spencer's high-profile general merchandise director, is leaving the business this week.
The departure of Radice, the former Selfridges chief executive who joined M&S a year ago, comes as new chief executive Stuart Rose puts his own team in place.
Radice, who joined as director of home and had seen his role expand to take on responsibility for revitalising clothing ranges and stores, was closely associated with departed chief executive Roger Holmes. He also spearheaded the Lifestore homeware-only format, which has an uncertain future under the new regime.
M&S said Radice is leaving 'by mutual consent'. Rose said: "Vittorio is a hugely talented retailer and we would like to thank him for his valuable contribution to the company during his time here. We wish him well."
www.marksandspencer.com
10 June 2004
Green May Make New Offer M&S
Retail entrepreneur Philip Green would not definitely walk away from a bid for M&S if the competition authorities launch and investigation. The successful high street retailer has also signalled that he will not be rushed into the next move in his potential bid for the retailer.
Green issued a statement saying his company Revival "has yet finally to determine whether, if it were to make an offer for Marks and Spencer Group and such offer were to be referred to the Competition Commission, it would still wish to pursue its interest in acquiring M&S or which, if any, undertakings it might be prepared to offer in order to secure clearance from the Office of Fair Trading or the Competition Commission."
The statement was prompted by the Takeover Panel, which sought clarification
after newspaper reports quoted sources close to Green saying he would abandon
a bid in the event of an investigation.
Green, owner of the Bhs and Arcadia chains, has also been asked by reporters
at a conference in London if he has talked to M&S investors about the level
of bid they might accept.
Green said: "Not at this time," adding that he would talk to his own financial advisers first. He said: "We'll consider our position over the next few days," The City, anxious for the next instalment in what it hopes will be a long-running saga, has speculated that Green might return with a new offer M&S this week.
The support of key institutional investors will be essential if Green hopes
to persuade the M&S board to recommend a higher bid.
The value of his initial offer has been variously estimated at between £7.5bn
and £9bn, depending in part on the value placed on the 25 per cent equity
element of the offer. The City suggests Green will have to go to at least £10bn
if he wants to add M&S to his empire.
Green was speaking at the Sunday Times Business Week conference.
www.marksandspencer.com
9 June 2004
Green's Bid For M&S Continues
Philip
Green has issued a formal statement confirming that he has had no guidance from
the Office of Fair Trading on whether a takeover of Marks & Spencer would
trigger a competition inquiry.
The statement was made at the request of the Takeover Panel following press speculation that Green, who already owns the Bhs and Arcadia chains, had been given an indication by the competition authorities that a takeover would go through.
The statement to the Stock Exchange, issued through the Green family's bid vehicle Revival Acquisitions, said: "Contrary to recent press speculation, informal guidance has not been sought from the Office of Fair Trading in relation to a possible offer by Revival for Marks and Spencer Group."
Green would be keen to avoid a full-blown inquiry into any takeover. The issue could hinge on whether the OFT would look at the clothing retail market as whole, or simply womenswear. A 25 per cent market share is normally the trigger for a competition inquiry. Verdict Research estimates the combined M&S, Bhs and Arcadia operations would have a 20.3 per cent share of the UK clothing market, and 26.5 per cent of womenswear sales.
Revival's initial bid for M&S was rejected by the high street giant last week. Green and his advisers are currently considering whether to return with a higher offer.
www.marksandspencer.com
7 June 2004
Philip Green Sets Out Terms For M&S Bid
Arcadia owner Philip Green has set out the terms of his proposed offer for Marks & Spencer, pressing for a recommendation from the board for an offer valuing the company at around GBP9bn.
Green has so far not made a formal bid, but has issued details of his possible offer, to be made through Green's newly formed business Revival Acquisitions. Revival is proposing an offer of between 290p and 310p-a-share in cash, along with a 25 per cent stake in Revival. The true value of the bid will depend on the worth the City places on the 25 per cent so-called 'stub equity' stake.
Green has set out a series of conditions for formalising the bid including, crucially, the recommendation of the M&S board. He is also seeking information from M&S including details of the contract between the retailer and fashion designer George Davis.
Other information sought by Green includes details of the capital expenditure commitments M&S has made to new store formats including Lifestore, Simply Food and the planned Per Una standalone stores.
The Green family plans to invest GBP1bn of its own funds in the offer, with the rest coming from a consortium of banks. M&S has moved quickly to bolster its defences since the potential Revival bid was announced a week ago, with Stuart Rose replacing Roger Holmes as chief executive.
The issue for the M&S board is deciding whether or not to recommend the Revival bid is whether M&S has now done enough to convince shareholders to give the business the time needed to restore flagging sales.
Early indications are that the City is disappointed that the offer has not been pitched higher, with M&S shares falling by around 4 per cent in Thursday morning trading.
www.marksandspencer.com
3 June 2004