Takeover excitements are few and far between on the FTSE 100 these days, so when rumours of a Marks and Spencer acquisition hit Bloomberg this afternoon, investors had a short moment of joy.
So happy were they at rumours that private equity firm CVC Capital Partners were eyeing up a possible £8bn takeover all senses were lost and the shares spiked 5% shortly after 3pm, compared with a market that has about as much life in it as a turkey at Christmas.
CVC, which was forced to scrap a £10bn bid for Sainsbury's in 2007, has approached various executives inside and outside the company about a possible management role, but negotiations are at a very early stage, according to Bloomberg.
M&S has had a difficult time recently, recording a fall in profits this year for the first time since 2009 – two years into boss Marc Bolland's tenure, who took over from the much-loved Sir Stuart Rose (a tough act to follow).
Womenswear suffered after stock issues, leading to general merchandise director Kate Bostock getting the boot – or stepping down, depending how you look at it.
Only yesterday analysts started suggesting any bid would be too pricey when rumours were abound.
Earlier this month the Telegraph suggested Bank of America Merrill Lynch have been looking over the numbers to see if it would provide the debt for a possible bid.
Shares in M&S hit a high of 385.9p today, when the news first broke, but have now settled up 10.8p on the day at 367.3p – a 3% rise.
