Billionaire Mr Philip Green raised his proposed takeover offer for Marks and Spencer to 400 pence per share cash today and said he had the backing of the retailer's biggest shareholder, Brandes.
Mr Green said there were still conditions to be met, however, before he made a formal offer valuing M&S at £9.1 billion - primarily recommendation of the offer by the board of M&S and satisfactory due diligence.
This is the third indicative offer from Mr Green for Britain's biggest clothes retailer. M&S has rejected his two proposals so far, the last worth at least 370 pence per share.
At 8:30 a.m. M&S shares were up 5.4 per cent at 379-1/2p.
Mr Green, the owner of Bhs department stores and Top Shop and Dorothy Perkins fashion chains, said he would be prepared to offer 400 pence per share in cash by August 6th - the deadline by set by the UK Takeover Panel on Tuesday by when he must make a formal offer.
He also said he would be prepared to offer a cash-and-share alternative comprising 335 pence per share cash and a 30 per cent equity interest in his bid vehicle, Revival.
He said Brandes Investment Partners would accept the offer for its 11.7 per cent holding in M&S if the offer was recommended by the board.
Marks & Spencer declined to comment early this morning.
"This is the sort of ballpark people were looking for," said Mr Nick Bubb, retail analyst at Evolution Beeson Gregory.
"But M&S are coming out with their strategy review on Monday, which is likely to be pretty punchy in terms of cost cutting and the likely uplift to profits," he said.
M&S chief executive Mr Stuart Rose, brought in at the end of May to fend off the approach from Green, is set to unveil his recovery plan for the clothing, food and homewares stores group on July 12th.