Statement by Philip Green
Marks & Spencer PLC
10 February 2000
Marks & Spencer p.l.c.
Statement by Mr Philip Green
On 13th December, 1999, I announced, in response to press speculation, that I
had retained Donaldson, Lufkin & Jenrette International as investment bank
adviser in respect of Marks & Spencer p.l.c. At that time, I stated 'it is
too early to determine whether any proposal, including a possible takeover
offer, will be formulated for presentation to the board of Marks & Spencer
p.l.c.'.
Since the release of that announcement, I have continued to work with
Donaldson, Lufkin and Jenrette to formulate proposals which would have
provided Marks & Spencer shareholders with a cash and share offer. The cash
element of such an offer would have been substantial and underwritten by a
group of leading international financial institutions.
I regard the recent barrage in the press as an unjustified attempt to
discredit me and deeply disappointing. 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.
I and my advisers believe that the proposals we were formulating would have
been in the interests of Marks & Spencer shareholders, especially in view of
the company's recent profit and share price performance. Its total operating
profit and profit attributable to shareholders halved between the financial
years ended 31st March, 1998 and 31st March, 1999 (1) and its share price
declined by over 60% relative to the FTSE 100 index between the dates 2nd
January, 1998 and 30th December, 1999(2).
I have no present intention of proceeding with an offer for Marks & Spencer,
although I reserve the right to do so in the event that an offer is made by a
third party.
Bases and sources of information:
(1) Marks & Spencer Annual Report and Financial Statements for the year
ended 31st March, 1999 (the total operating profit and profit
attributable to shareholders for the financial year ended 31st
March, 1998 as restated in the Annual Report and Financial
Statements 1999).
(2) The closing trade price of an ordinary share of 25p in Marks &
Spencer on the relevant dates as derived from the Daily Official
List of the London Stock Exchange and the FTSE 100 index stated by
Bloomberg L.P. on the relevant dates. (Source: Copyright 2000
Bloomberg L.P. Reprinted with permission. All rights reserved.)
Enquiries:
Philip Green - telephone: 0207 200 5999
Henry Faure Walker
The Communication Group - telephone: 0207 630 1411
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