The board of Arcadia Group said it will recommend Mr Philip Green's 408 pence a share indicative offer to shareholders.
The board of retailer group Arcadia met yesterday to discuss the revised proposal from BHS owner Mr Green's vehicle, Taveta Investments Ltd, which values the company at £770 million or £850 million if option payments to Arcadia staff are included.
"The board has concluded that the proposal represents a value which the board will recommend to shareholders, subject to finalisation of documentation and the detailed terms of any offer and the conclusion by Taveta of its financing arrangements," it said.
Arcadia also said it has declared a second interim dividend of 4 pence per share for the year to August 31st, 2002, payable in February 2003 to shareholders on the register at the close of business on September 20th.
It said Taveta has confirmed shareholders will retain the right to this dividend in the event that it makes an offer for the company.
PA