Bid speculation sends M&S shares soaring

Marks & Spencer shares have climbed 4.17% to 326.9p on optimism about the British retailer's plans to revamp its stores and speculation about private equity interest in the stock.

M&S shares have fallen around 20% over the past three months, as the high street chain - fronted in advertising campaigns by model Twiggy and singer Dannii Minogue - has hit been like almost every other retailer by a drop off in consumer confidence and a squeeze on household spending.

But shares in the chain have this morning been buoyed by speculation of possible private equity investment, and a profits announcement from the Westfield shopping centre where the clothing giant occupies a dominant site.

Analysts believe that an upcoming meeting, called at short notice and penciled into their diaries for Monday morning, will offer an insight into investment in the firm.

'It should be noted that M&S has just called an analysts meeting ... at short notice for Monday morning to unveil its exciting new store revamp plans,' Arden Partners analyst Nick Bubb told Reuters news agency.

'M&S Food is in good shape, but M&S non-food needs a more exciting store environment to drive more customer footfall and spending,' Bubb continued, adding that even without private equity speculation shares in M&S look cheap.

M&S has declined to comment on the bid speculation being discussed in the market, however the rumours have given the stock a much-needed boost after it has spent much of the summer in decline.

Between May and September, M&S shares have fallen 20.7%, dropping from 395p, as at 11 May, to 313p at the close of yesterday's session.  This compares to the stock's 427.4p 12-month peak, achieved on 29 October last year.