Green targeted Sainsbury's
MARKS & Spencer is not the only retailer Philip Green has had his eye on recently. The billionaire had a tentative £6.4bn bid for Sainsbury knocked back last summer.
The approach was rebuffed by Sir Peter Davis, who was ousted as chairman last week after a disastrous profits warning.
Green struck up a relationship with Davis - who was then chief executive - by offering to stock Bhs clothes in Sainsbury stores.
His proposed Sainsbury bid of around 330p per share dwarfs Friday's 273 1/2p closing price. But Green dropped the idea after failing to secure Davis's backing to recommend it to either the board or the Sainsbury family, who own 38% of the shares.
Green said: 'These things go on all the time.' He denied he would switch his attentions to Sainsbury if attempts to land M&S fall through.
Sainsbury could face private equity bids after warning that profits will slide. Shareholder groups are mobilising to oppose Davis's £4.5m pay-off at the annual meeting next Monday.
THE Financial Services Authority is expected to quiz supermarkets chain Wm Morrison this week after the chairman's niece and her husband sold shares worth £9.8m ahead of a profit warning. Sir Ken Morrison said: 'They are not insiders. I have no idea why they chose that moment to sell.'
