FSA to investigate M&S trading
City watchdog to probe dealing in run-up to Green bid
The Financial Services Authority has confirmed that its is to conduct a formal investigation into trading in Marks & Spencer shares in the weeks and days before Philip Green announced a potential bid for the business.
The FSA has not set out the scope of the probe, but it is expected to include, among others, Stuart Rose, now M&S chief executive, and longtime Philip Green ally Tom Hunter. Both were linked to transactions involving M&S shares in the run-up to Green’s announcement of a possible bid through his company Revival Acquisitions on May 27.
The FSA was originally asked by M&S to look at unusual patters of dealing, and has said that following its initial inquiries its referred the matter for investigation to its enforcement division. However, the FSA has not yet concluded that any rules were broken.
Rose has already confirmed that he bought M&S shares early in May, before he was approached by Bhs and Arcadia owner Green, who hoped Rose would take join his bid for M&S, as well as before he was offered the role of M&S chief executive. M&S has said Rose will be cooperate fully with any investigation.
Tom Hunter, who has interests in retail chains including Birthdays and the Gadget Shop, is a shareholder in Bhs and has worked with Green on a number of deals over the years. A charitable trust which benefits Hunter’s children bought M&S shares in April. Hunter has said he had no knowledge of any plans by Green for an M&S bid.
Rumours of Green’s bid swept the City in the days before it was formally announced, leading to heavier than usual trading in M&S shares and forcing the entrepreneur to show his hand earlier than planned.
