Mr Philip Green hopes today to hear whether the trustees of the Marks & Spencer pension fund will meet the billionaire retailer and his advisers to discuss his £8 billion-plus (¿11.94 billion-plus) proposal for the retailer.
Mr Green regards any increase in the proposed bid as conditional on his obtaining greater clarity about the pension fund's liabilities. On Friday, he wrote to Mr David Norgrove, chairman of the trustees, seeking a meeting with them. He said yesterday that determining the fund's liabilities was "absolutely key".
He added: "We need to be clear on what the funding requirements are to enable us to make a considered decision." He is believed to have estimated a potential liability of up to 30p a share.
The recent collapse in takeover talks between Permira and WH Smith showed the influence of pension fund trustees. The retailer's fund trustees had demanded a substantial cash injection to help cover a deficit.
The M&S fund trustees are aware they will play a significant role in any bid and have spent the past few days bolstering an advisory team. CSFB was appointed financial adviser this weekend and Smithfield Financial was brought in late on Friday to give public relations advice. They join Linklaters, the fund's long-term legal adviser, and Watson Wyatt, actuarial advisers.
A spokesman for the trustees said they were "very aware that they have clear legal and fiduciary responsibilities" and were "keen to ensure they receive the best actuarial, legal and financial advice".
Mr Norgrove has cut short a holiday to meet the other trustees but it is unlikely they will meet Mr Green before mid-week.
Mr Paul Myners, acting chairman of M&S, said the board would not stand in the way of discussions. "It is for the pension fund trustees and their advisers, which act independently of the company, to discuss how they respond," he said.
M&S disclosed in this year's annual report that its pension scheme had a £670 million deficit under the FRS17 accounting standard. Including tax benefits of £200 million, the deficit was £470 million. In March, the group issued a bond to fund the pension shortfall, then £585 million.
The company said last month it would unveil a strategy update on July 12th outlining how it aims to improve its business, as it steps up its defence against a possible takeover by Mr Green.
Sources said M&S would unveil a £750 million sweetener to shareholders, raising cash for a special dividend or share buyback from the sale-and-leaseback of its properties.
