CVC Capital weighs bid for Marks & Spencer: report

The stock of British clothing stores chain Marks & Spencer Plc yesterday shot up by over 4 per cent after Bloomberg reported that a private equity firm could be getting ready to take it private.

CVC Capital Partners has explored taking the 128-year old chain private, the news agency reported, citing people close to the matter, but added that the private equity firm has not moved beyond a preliminary examination of the West Yorkshire-based retailer, and is not currently thought to be pursuing a bid.

CVC has approached several executives inside and outside the company over a possible management role under private equity, but negotiations are at a very early stage, the report said.

Shares in Marks & Spencer had already risen by nearly 10 per cent since the past month on speculation that the clothes and food retail chain is a likely takeover target after in May it unveiled its worst ever quarterly sales since the spring of 2005.

Marks & Spencer, whose share value has eroded by almost 50 per cent from their highs in mid-2008, is currently valued at £5.7-billion ($9 billion).

Early this month, The Sunday Telegraph reported that several London bankers were looking at Marks & Spencer as a potential £6-billion acquisition target, but cited a number of difficulties in mounting a successful takeover despite the current drop in its share price.