HIGH street giant Marks & Spencer is set to play down speculation of a £750m cash call on shareholders this week, it is reported.
Sources close to executive chairman Sir Stuart Rose said there was “no need” for a major fundraising following an improved trading performance from the business.
Some analysts have said incoming chief executive Marc Bolland – who joins from supermarket Morrisons next month – could use the funds raised from a rights issue to kick-start an overhaul of the retailer.
But the cash call would come after a tricky period which has already seen shareholders faced with a dividend cut.
Relations with major investors were soured by Sir Stuart’s controversial dual role as executive chairman and chief executive against City best practice. He will retain the role while Mr Bolland beds into the business.
M&S, which was unavailable for comment on the story, is due to post another improvement in sales with its latest trading update on Thursday, which covers the 13 weeks to March 27. The retailer posted its first like-for-like sales growth in more than two years in the quarter to December 26,