Qatari group linked to £8bn takeover bid for Marks & Spencer

The Qatar Investment Authority is in talks with private equity groups and banks about approaching the high street chain, according to The Sunday Times.

M&S shares have surged in recent days amid rumours of a bid for the group, with stock up four per cent since Wednesday.

A bid for the retailer would mark the biggest private equity takeover of a British blue chip firm since Alliance Boots was snapped up by US buyout firm KKR for £11bn in 2007.

It would also see another British name fall into foreign hands after recent high-profile takeovers such as US group Kraft’s controversial acquisition of Cadbury.

But M&S is often the subject of takeover speculation and there are significant hurdles for any such deal to get the go ahead. Aside from the price tag needed to win over management and investors, M&S has a hefty pension deficit of around £300m which means the scheme’s trustees have a significant say in any deal.

Other bidders have tried and failed to bag M&S in the past, with BHS and Topshop tycoon 
Sir Philip Green launching an unsuccessful hostile £10bn bid in 2004.

Private equity firm CVC is said to have considered a bid for M&S last summer but pulled out after its plans were made public.

The takeover spotlight has once more fallen on M&S with its faltering sales in recent years.

Chief executive Marc Bolland, who joined from Morrisons, is leading a turnaround plan to revive its performance but progress has been slow because of difficult high street conditions.