M&S: Rose's counter-attack

STUART Rose will have little time to celebrate FSA clearance over his controversial purchase of 100,000 shares in M&S ahead of Green's takeover assault.

He must give the performance of his life on Monday, producing a recovery strategy convincing enough to take the Marks & Spencer share price above Green's 400p terms.

On the trading side, he has already said he will focus on 'product, product, product' in an attempt to woo back M&S's once-loyal Middle England customer base. Other planks of the strategy could include:

Lifestore: Out goes the ill-judged and expensive homewares chain masterminded by ex-director Vittorio Radice, one of a number of write-offs Rose is expected to make.

Supply chain: Key components of the Rose masterplan will centre on making M&S operate more efficiently and squeezing costs out of its unwieldy and inefficient supply chain. The group is said to buy up to 5% more expensively than its rivals.

Property: Revaluation is likely to thow up perhaps £4bn, double the last valuation. Property tycoon Gerald Ronson is understood to have been casting his eye over the extensive portfolio.

Financial services: A sale of the mortgage to loans and insurance arm would raise more than £1bn.

Windfall: A cash handout would create most interest among shareholders, with the M&S chief thought willing to offer up to £2bn, or £1 a share. But that could strain group finances.