British retail entrepreneur Philip Green has said his bid vehicle Revival Acquisitions has withdrawn its proposal to make a takeover offer for UK food and clothing retailer Marks & Spencer.
In the last few weeks Green has attempted to persuade the board of M&S to recommend a proposed takeover offer, which he has raised in value to 400 pence per share, valuing the company at £9.1bn (US$16.8bn). However, the board said that even Green’s latest offer undervalued the company.
According to M&S, after this week’s AGM Green telephoned M&S chairman Paul Myners to inform him that Revival had the support of 36% of M&S shareholders to request that the board allowed Revival access to its books to perform due diligence. Myners replied that the board was in the process of consulting shareholders.
Having failed yet again to gain access to the company’s books, Green announced last night that Revival had withdrawn its proposed offer.
The board of Marks & Spencer said it was “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. Stuart Rose and the team are fully committed to the task and we have every confidence in their ability to succeed,” Myners added.
Earlier this week, in a bid to keep shareholders on side, Marks & Spencer’s new CEO Stuart Rose unveiled his plans for the group, detailing how he planned to turn the ailing retailer around. To read more, click here.