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Marks & Spencer was yesterday forced to issue a statement ruling out a bid for the supermarket chain J Sainsbury after an apparent gaffe by its chief executive, Stuart Rose.
Referring to the possibility of bidding, Rose told reporters on the sidelines of a retail conference in London: "It's an interesting idea because assets like this don't come on the market very often and the company is effectively in play. Your shareholders would think you were an idiot if you didn't consider it. Watch this space."
Following a report of Rose's off-the-cuff remarks on the Bloomberg news service, M&S went into a huddle with its advisers and later in the evening issued a clarifying statement. "The board of Marks & Spencer confirms that it has been considering its position in relation to a possible combination with Sainsbury's. ... The board has decided it does not intend to make an offer for Sainsbury at this time."
Last month, private equity firms Kohlberg Kravis Roberts, Blackstone Partners and CVC were forced to confirm they were considering a bid for Sainsbury's after news of their plans leaked out. Under Takeover Panel rules, the M&S statement prevents it from making a bid for six months. But it would be free to launch an offer if the private equity consortium does bid or if Sainsbury's were to recommend a deal with M&S.
- INDEPENDENT
