Retail tycoon Mr Philip Green believes he has the backing of shareholders owning at least 20 per cent of Marks & Spencer (M&S), investment sources said today.
Mr Green had a £9.1 billion sterling offer for Britain's M&S rebuffed yesterday. But he is hoping these shareholders, who have agreed to sell to him at 400 pence per share if the M&S board recommends the proposal, will put pressure on the clothing retailer, which dismissed his offer as inadequate.
Those shareholders who are already known to have thrown their weight, albeit conditionally, behind Mr Green, include Brandes with 11.7 per cent and Schroders with 1.2 per cent.
They may also include another top US investor and numerous smaller stockholders, a source said today.
Shareholders are waiting to see the details of M&S chief executive Mr Stuart Rose's turnaround plan on Monday before they decide their next move.
"We're all focused on Monday now," said a spokesman for Mr Green. "If shareholders think Rose has done a good job on Monday and they don't want Philip's money, then fine, we'll walk away."
Mr Rose, who was parachuted in to M&S to defend the bid and steer its recovery, will have to demonstrate that the company is worth more than Mr Green is offering. Investors are expecting a sizeable cash return as a reward for their loyalty.
If they are not convinced by Mr Rose and his plan, shareholders may pile pressure on M&S to allow Mr Green to see the books to help him put together a formal bid.