The Qatari Investment Authority (QIA) is unlikely to be making a bid to purchase Marks & Spencer, despite reports at the weekend indicating a £8 billion bid was potentially set to be tabled for the retailer.
Sources close to QIA told a UK newspaper yesterday that the Qataris had not made any formal approach to take over M&S, nor had they been seeking a private equity firm to form a joint bid for the retailer.
M&S, however, isn't commenting on the matter. On the media speculation, a spokesperson for M&S said, "You'll see from the coverage that we haven't commented, and nothing has changed."
Shore Capital Stockbrokers, which follows M&S stock, said, "As we have not yet seen any statement to the market from any party, we conclude that nothing firm is currently on the table for the M&S Board to consider."
It noted that M&S "is in a period of sustained transition", and is two-thirds of the way through a change programme "that should make it more efficient and cash generative. […] It is an understandable time for any suitors to consider an approach for M&S because in all likelihood if the UK clothing performance does improve and cash flows through in due course then the share price should be much higher any how." (22 March)
© 2013 - ESM: European Supermarket Magazine by Kevin Kelly
