Retail tycoon Mr Philip Green has abandoned his £9.1 billion (€13.6 billion) offer for Marks & Spencer after the board of Britain's top clothing retailer refused to open its accounts to him.
Green's bid vehicle Revival said late yesterday that it had conceded that M&S's board under chief executive Mr Stuart Rose would not provide access to its accounts in time to meet a regulatory deadline of August 6th, and was therefore withdrawing its offer for the 120-year old high street icon.
Earlier yesterday, Mr Green said he had the support of a third of holders of shares or derivatives in M&S for allowing him to look at the accounts.
But M&S chairman Mr Paul Myners told the company's annual general meeting yesterday that the board would not budge on its refusal to open the books, reiterating the charge that Mr Green's 400 pence per share bid undervalued the company.
In his strategy review on Monday, Mr Rose said he would return £2.3 billion to investors in a share tender offer, sell the M&S Money financial arm and make annual cost cuts of £320 million by 2006/7 in an attempt to revitalise the flagging retailer.
Mr Green said he reserved the right to make or participate in an offer for the group within the next six months in the event that M&S's board agrees to recommend an offer or a third party announces a firm intention to make an offer.
Shares in M&S, which stood at 290 pence before Mr Green first expressed interest in the company on May 27th, closed at 364 pence yesterday. However, the news of his withdrawal came well after the market closed and the shares are likely to react when the market opens this morning.
A statement issued late yesterday said: "Revival will not gain the cooperation of the board of M&S to provide it access to the information necessary for Revival to make its offer, including the necessary meeting with the pension trustees, by August 6th."
United States-based Brandes, which has an 11.7 per cent stake in M&S, had previously issued a statement urging the retailer to consider Mr Green's final proposal of 400p a share.
It had already pledged to back a formal offer from Revival, while the bid had also attracted support from Schroder Investment Management, which has 1.2 per cent of shares, and others controlling a total of 21.1 per cent of shares.
But Mr Green's statement said the decision to withdraw came following yesterday's AGM statement and conversations with Mr Paul Myners. Mr Green's statement said: "Since it has never been Revival's intention to disrupt the business of M&S, Revival is making this announcement promptly and wishes to thank the many M&S employees and shareholders who have expressed their support.
