Marks Bid surely soon26 Apr 2018 16:49
I would not like to be short on these at the moment, in case a bid comes in.
Surely the Chinese must be looking at these by now?
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M&S shares rise on bid speculation Anne-Sylvaine Chassany
March 18, 2013 Shares in Marks and Spencer rose 7 per cent on Monday, as investors bet on the high street chain becoming the subject of a bid.
Shares in M&S closed up 25.6p at 398.10p, giving the company a market capitalisation of �6.4bn, following reports that the Qatar Investment Authority was weighing an offer worth �8bn and sounding out private equity partners. The stock briefly rose above 400p level at which Sir Philip Green proposed acquiring the retailer nine years ago.
However, a person close to Qatar Holding, one of the country�s main investment vehicles, said it was not considering a bid for M&S.
Neither M&S nor Qatar Holding made statements to the Stock Exchange on Monday.
Under Takeover Panel rules, prior to any approach being made, the obligation lies with the potential bidder to make a statement. After an approach is made, the obligation is with the company receiving it.
An announcement must be made if the company is the subject of rumour and speculation or if there is an unusual movement in its share price. But if there is takeover speculation without any substance, the panel does not require an announcement.
Despite these factors, investors and analysts continued to believe M&S was in play, driving the shares higher.
Chief executive Marc Bolland is under pressure to turn round the clothing business � particularly womenswear � after a poor Christmas. Several people familiar with the situation said trading had also been tough this quarter.
While private equity firms have looked at a possible bid for M&S in the past, including CVC Capital Partners last year, the general feeling among the private equity industry is that such a large deal would still be difficult to fund for a traditional buyout firm.
The investment would be a bet on the UK economy, which has been sluggish in the wake of the financial crisis amid a wave of austerity measures, and would not be easy to realise. But M&S is still a valuable brand name and would be a trophy asset for a middle eastern or Chinese investment fund.
After Monday�s rally, any bidder would need to pay about �8bn for the equity. With debt of almost �2bn and pension obligations, that means a bid would need to be pitched at about �10bn-�11bn, requiring an equity cheque of �3bn to �4bn, according to bankers. One factor that could aid any bid is that M&S�s pension deficit has fallen to &am
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