Marks & Spencer chief executive Stuart Rose has ruled out a bid for retailer J Sainsbury - just hours after publicly telling shareholders to “watch this space”.
In a rare blunder, Rose told delegates at the Retail Week conference in London on Wednesday night that, “Sainsbury’s is effectively in play and shareholders would think I was an idiot if I didn’t consider it”, also commenting that the chain was not the kind of asset that regularly came up for grabs. He was responding to press questions at the event.
However, in a statement issued later on Wednesday, M&S said: “In response to recent speculation, the board of M&S…confirms that it has been considering its position in relation to a possible combination with J Sainsbury. Further to this, the board has decided that it does not intend to make an offer for the retailer at this time.”
Under City rules, M&S is now barred from launching a bid for J Sainsbury for six months, unless a rival bidder for the chain emerges or the Sainsbury board recommends a deal with M&S.
Sainsbury’s has been valued in the stock market at £9.5 billion.
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