M&S: Back me or else - Green
PHILIP Green issued an ultimatum after the boss of Marks & Spencer revealed his vision of a way forward for the company.
The Bhs billionaire called on shareholders to march on tomorrow's M&S annual general meeting and back his £9.1bn takeover bid or forget it.
His move came as M&S chief executive Stuart Rose released a rescue package to revive the store's flagging fortunes.
The proposal - described as a 'killer blow' for Green - promises to return to basics.
It targets the company's 'neglected' core of middle-aged women customers and gives shareholders a £ 2.3bn sweetener of about £1 a share to stay with the current management.
But Green said the package was 'pretty basic management theory' and painted himself as the 100-year-old company's only saviour.
'No one can doubt the importance of the brand in the UK, to the public and consumer. Millions of people shop there every week,' he said.
'I believe it requires some special skills to...make it a passionate place where people want to work, shop and visit. We can provide that.'
Green, whose empire includes Bhs, Debenhams and Top Shop, added: 'This is a huge amount of money. If the shareholders see this is the right price, then that needs to be happening.
'There is an AGM on Wednesday and shareholders can make their case. People need to take on board the urgency.'
City analysts believe Rose's package, designed to please shareholders and customers, 'swings the pendulum' in his favour.
Under the plan, the number of clothing labels will be cut to focus on good quality and low prices, especially for women aged between 35 and 55. There will also be a drastic cost-cutting programme to generate annual savings of £320m.
Some 650 jobs will be cut and 500 products will be removed from the store's food halls.
The flagship Lifestore in Gateshead, Tyneside, designed as a forerunner to a series of homewares outlets, is to close. The roll-out of small Simply Food stores on suburban streets has been stalled, perhaps permanently.
The company's financial services arm will be sold to HSBC Bank for £762m, although M&S will keep the right to 50% of future profits. Deals with suppliers of food and clothing have been renegotiated at lower costs.
Rose, who joined M&S six weeks ago in a multimillion pound deal to fight the Green takeover, described his package as 'value today and value tomorrow'.
'The sum total of all this demonstrates that Philip Green's offer significantly undervalues the business,' he said. ' I am going to unlock the real potential of this business with my colleagues.'
