Middle Eastern sources close to the Qatari Investment Authority today denied reports over the weekend that the Arab sovereign wealth fund could be lining up an £8 billion takeover bid for Marks & Spencer.
Before sources contacted the Evening Standard with the denial, M&S shares had jumped by almost 9% today to add to the near-5% rise which they saw last week as bid speculation reached fever pitch.
After touching a two-and-half-year peak of 407.7p today the company’s shares relapsed to 400.15p — still a rise of 27.5p.
The sources denied that the Qataris had either made any kind of approach to the retailer itself or that they had been sounding out private-equity giants like CVC to form a joint bid.
They also pointed out that while Qatar has recently said that it plans to invest billions of pounds in the UK this would be primarily targeted at infrastructure projects and other long-term investments.
While the Qataris have long held a 26% stake in Sainsbury’s, their more recent investments have tended towarts long-term or trophy assets such as Harrods, fashion house Valentino and football club Paris Saint-Germain.
Marks & Spencer declined to make any comment today and the fact that it did not have to make a formal statement to the stock market reinforced the belief that there has been no bid approach.
Freddie George, retail analyst at Cantor Fitzgerald, said: “With another lacklustre fourth update due on April 11 and a further possible downgrade to consensus earnings, currently £662 million according to the company website, M&S is effectively in play.
“On balance, we believe a bid is unlikely, although while equity markets are close to record highs, takeover speculation is likely to remain over the medium term.”
Marc Bolland took over from Sir Stuart Rose as chief executive of M&S in May 2010 when the share price stood at 361p.
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