Green Ends M&S Bid Controversy

Philip Green has dropped his plans to bid for Marks & Spencer after Stuart Rose convinced enough shareholders it can turn the company around. Green, owner of Bhs and Arcadia, conceded in a statement on Wednesday evening that he "will not gain the cooperation of the board" in time to meet the August 6 deadline for a formal bid set by the Takeover Panel.

Through his bid company Revival Acquisitions, Green made a final offer of 400p-a-share last week, valuing M&S at GBP9.1bn. Throughout the process, Green, has insisted no formal offer would be forthcoming without the recommendation of the M&S board.

Despite pressure from some major shareholders, including US equity fund Brandes, to open the books to Revival, the M&S board has remained firm in its view that the price offered undervalues the business. A statement form the M&S board said the company "is pleased that a period of uncertainty has come to an end. As a board, we are focused on improving the performance of Marks & Spencer and delivering the long term value that we have identified for the benefit of our shareholders."

Green has left a lasting mark on the UK's best known high street retailer. His initial approach at the end of May led directly to the appointment of Rose, who was seen as a strong candidate to lead a recovery at M&S by the City.