M&S Share Inquiry Continues

Amidst the take over bids and new shares dilemma, Marks & Spencer Group boss Stuart Rose told BBC radio he would quit if he had done anything wrong by buying shares in the high street retailer last month. "If I had done something wrong I would step down from this company and I will fully, fully co-operate with the FSA (Financial Services Authority) when I see them."

MChairman Paul Myners told The Times there was no question of Mr Rose stepping aside while the FSA examined M&S share deals. The FSA confirmed last week that it had found some evidence of insider dealing in M&S shares and that it was widening its inquiries.

The watchdog has the power to trawl through the personal emails and phone calls of those involved in its investigations. Shares in M&S jumped 7 per cent in the two days before Bhs owner Philip Green announced on May 27 that he was considering GBP8 billion (USD21 billion) bid for M&S.

The FSA is scrutinising Mr Rose's purchase of 100,000 shares three weeks before the bid became public. He made the investment after receiving a phone call inviting him to a meeting at which Mr Green disclosed that he was preparing a bid. Mr Rose is looking at a paper profit of GBP84,000.

Mr Myners said that Mr Rose, who was appointed in May to help to fight off the Bhs bid, had done nothing wrong and that his company would do everything it could to help the watchdog carry out its investigation.