Green probes M&S pension fund
RETAIL entrepreneur Philip Green has requested a meeting with pension trustees of Marks & Spencer in an apparent attempt to determine how much of the pension fund's liabilities and shortfall he may have to take account of if his bid for the retailer is successful.
The move comes after retailer WH Smith in June called off talks on a takeover by private equity firm Permira. Trustees of the company's pension plan had asked for a big cash sum for the pension fund that forced Permira to cut the amount of cash it was willing to offer shareholders.
Earlier this week, Green denied he had decided to abandon his bid for M&S, which has already rejected two offers worth more than £7bn.
The entrepreneur is likely to try to reach agreement with the pension trustees on how much of the deficit he needs to pay off to win their approval, sources said.
Marks & Spencer said: 'This is a matter for the pension fund trustees, it would not be appropriate for us to comment.'
The pension trustees include M&S finance director Alison Reed, company secretary Graham Oakley as well as retired executives Sir David Sieff and David Norgrove, who chairs the trustees.
They are in return likely to seek information on Green's funding plans so they can determine the effect of any takeover on the company's credit rating.
