Shares in Marks & Spencer jumped on Monday after it was reported that an investment firm was interested in the high street stalwart.
According to The Sunday Times, Apollo Global Management has been “running the rule” over the FTSE 250 retailer, which last week posted better-than-expected interim results and upped its full-year profit guidance.
Citing unnamed City sources, the newspaper said Apollo considered M&S a “bargain” as its shares were undervalued. In particular, Apollo believes the market is overplaying the impact of the pandemic on the stock and under-appreciates its 50% stake in Ocado’s retail business.
However, it remains unclear if recent gains in the share price have dampened Apollo’s interest, the report acknowledged.
Shares in M&S, which by 1000 GMT were trading 3% higher at 248.7p, have put on 40% over the last month.
Nick Bubb, retail analyst, noted: “If Apollo is serious about bidding for M&S, they’ve left it a bit late, given the big recovery in the share price.”
Neither Apollo nor M&S have commented on the report.
