Marks & Spencer (M&S) chief executive Stuart Rose could be persuaded to return capital by raising more debt against the retailer’s large property portfolio.
Investors are putting him under increased pressure to return capital to shareholders after his rejection of Philip Green’s increased £8.3bn-£8.4bn takeover (about £10.4bn including debt) on Wednesday.
Rose is thought to be setting up meetings with property companies to discuss ways of refinancing the company’s £2.1bn portfolio.
The Times says he is not thought to be planning a sale and leaseback. Meanwhile, Green has asked for a list of all properties including tenure, rental details and size.
There are 573 shops worldwide, five head offices, giving scope for rationalisation, 10 clothing distribution centres and seven for food.
M&S is aiming to open 46,450 sq m (500,000 sq ft) of new space by March 2006. There are rumours that plans to open stand-alone Per Una stores will be ditched.
The Guardian takes a look at Green’s offshore empire, which includes Carmen Properties, used by Green to orchestrate the sale and leaseback of some Bhs properties.
Investors believe Green has reached his bid limit. He has refused to rule out going hostile.
Analysts also speculate that he might walk away. Shareholders said they were not interested in talking until the offer reached an unconditional £4 a share cash.
Green’s takeover proposal sparked speculation about further bids in the retail sector, including Dixons, where UBS said existing management, or another buyer, could move in for the kill.
MFI also continues to attract speculation.
References: Financial Times 18/06/04 page 1, page 20 (Lex), page 24 (Mudlark), page 26, page 46 (FT Markets – London), The Guardian 18/06/04 page 25, page 27 (Notebook), page 28 (City Diary), page 29 (Market forc
