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M&S suitor withdraws
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February 10, 2000: 10:52 a.m. ET
Potential bidder Philip Green drops plans, blames 'attempt to discredit me'
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LONDON (CNNfn) - Troubled U.K. retailer Marks & Spencer was left to fend for itself Thursday after Philip Green, the entrepreneur who has circled the company in recent weeks, declared he had no intention to launch a bid.
Green did say, however, that he reserved the right to make an approach if an offer from a third party emerges.
M&S shares were hammered in London Thursday, plummeting almost 6 percent.
Green's statement came almost two months after his announcement Dec. 13 that he had retained investment bank Donaldson Lufkin & Jenrette to advise him on a possible bid for the beleaguered Marks, Britain's largest clothing retailer and owner of more than 190 Brooks Brothers stores in the United States and Asia.
Recently, however, the company has lost its status as Britain's most profitable retailer after a series of unsuccessful acquisitions, criticism of its clothing lines and management squabbles.
Green said he had been working with DLJ to formulate proposals that would have provided Marks & Spencer shareholders with a mixture of cash and shares. He said the cash offer would have been "substantial" and underwritten by a group of leading international financial houses.
In a blunt statement, Green alluded to widely reported allegations in the British press that his wife had engaged in insider dealing by buying substantial stock in Marks & Spencer just prior to Green's Dec. 13 announcement.
Marks and Spencer shares had risen by mid-January to around 330 pence from around 250 pence, but subsequently dropped again as Green's retention of the DLJ advisers failed to yield any takeover announcement. On Thursday afternoon, the company's stock was down 5.9 percent at 239 pence.
"I regard the recent barrage in the press as an unjustified attempt to discredit me and deeply disappointing," Green said. "I believe the current atmosphere could only realistically lead to a bitterly and publicly fought takeover battle which, in my opinion, would now have a very damaging effect upon Marks & Spencer's employees and brand."
In a short response, Marks & Spencer said Thursday it was "pleased that Mr. Philip Green has now clarified his position and withdrawn. This allows us to continue to concentrate on our most important priorities: restoring our customers' belief in the excellence of Marks & Spencer and thereby regenerating shareholder value and rewarding the loyalty and hard work of our people." 
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Marks & Spencer
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