Philip Green made a final attempt to win control of Marks and Spencer yesterday by increasing his proposed offer to £9.1 billion (€13.64 billion) and securing the support of the retailer's largest shareholder.
The M&S board met for three hours yesterday afternoon without agreeing how to respond. It will meet again today, a spokesman said. Many investors expect M&S to reject the proposals.
Mr Green proposed an offer of 400p-a-share in cash with a share alternative of 335p-a-share in cash plus a 30 per cent equity interest in his bid vehicle, Revival Acquisitions.
Mr Green said the proposal - his third in five weeks - was his last.
"This is my final, final, final offer," he said. He also ruled out any possibility of a hostile bid.
"If they don't want my money I'll go and sit on a beach."
However, M&S's share price suggested that investors remain sceptical of Mr Green's chances of success. The shares rose 8¼p to 368¼p - far below the value of Mr Green's proposed offer.
Similarly, M&S's 10-year sterling bond, which fell as the likelihood of the group being taken over by Mr Green's highly leveraged vehicle increased, ended the day up 0.25 percentage points at 84.25 per cent of face value.
Mr Green's proposal remains conditional on its being recommended by the M&S board and his being able to carry out due diligence. Mr Green said US-based Brandes Investment Partners, M&S's largest shareholder with 11.7 per cent, had "irrevocably undertaken" to support an offer at 400p-a-share.
However, Mr Green said this was also conditional on a recommendation from M&S and would not prevent Brandes from accepting a competing offer of 430p-a-share or more.
Mr Green says he also has the support of Schroder Investment Management, which owns about 1.2 per cent of M&S.
However, Schroder refused to confirm this.
Mr David Cumming, head of UK equities at Standard Life Investments, a top-10 M&S shareholder, said: "The proposed bid merits consideration."
Mr Stuart Rose, M&S chief executive, will present his plans for the group on Monday.
