Stuart Rose, chief executive of Marks & Spencer is to be interviewed by the Financial Services Authority as part of its investigation into insider dealing in M&S shares.
The investigation centres on whether anyone who knew that billionaire entrepreneur Philip Green intended to bid for M&S abused that knowledge by buying shares before his proposed offer was made public.
Green confirmed that he was preparing a bid for M&S on May 27, the day after an unusually large number of trades took place in the company’s stock and the price jumped 10.25p to 290.5p. Since then it has emerged that acquaintances of Green and Rose bought shares or options in M&S during the preceding weeks.
The FSA said its inquiry may take weeks, months or years. Rose denied any wrongdoing and the M&S chairman Paul Myners has declared his support for him. Myners said: “Stuart was an accomplished retailer without an executive position and he regularly receive phone calls from Philip Green asking for a chit-chat.
“He also had no reason to believe at that point that he was going to be offered a position with M&S, so he decided to increase hi shareholding in the company - that’s an entirely legitimate decision.”
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