Rolling coverage of the latest economic and financial news
- Introduction: EY cuts UK growth forecasts
- Inflation and supply chain disruption to hit growth
- Pound touches 21-month high against euro
- All new buildings in England to have electric car charge points from 2022
- CBI says free market has left UK with ‘branch-line economy’
Shares in Marks & Spencer have jumped to their highest in two-and-a-half-years, on reports that New York-based Apollo Global Management had mulled a buyout.
The Sunday Times reported that the US private equity giant has been “running the rule” over the high street chain. City sources said Apollo had considered M&S a bargain, believing the company’s shares were being weighed down unreasonably by the impact of Covid.
Apollo has flirted with other acquisitions in the UK grocery sector, losing out in its quest for Asda, and then pulling out after making advances for Morrisons. Given its thwarted attempts so far, there is growing expectation that the group may make an offer for the company, particularly given that food was such a star performer in the last set of results.
Apollo will be weighing up the future value of Marks and Spencer’s e-commerce tie-up with Ocado, and speculation that its success so far may lead the retailer to buy out Ocado’s 50% share indicates the weight of expectation about its growth prospects. However, shares have surged more than 27% since those impressive results and if the price continues to climb, there is a chance Apollo may turn into more of a reluctant suitor.