M&S: No fast answer on pensions

By FIONA WALSH
Updated:

 

PHILIP GREEN'S hopes for early answers to his questions on the pension situation at Marks & Spencer are unlikely to be met, with the trustees determined to take full independent legal and actuarial advice before responding.

David Norgrove, the former head of clothing at M&S, is chairman of the pension trustees and is flying back to Britain from holiday in Finland today.

He has already appointed CSFB as the fund's financial adviser and brought in a public relations firm. The fund's legal advisers are Linklaters and it has Watson Wyatt as actuarial advisers.

A spokesman for the trustees said they would be meeting over the next couple of days to consider Green's letter.

Green says the extent of the pension fund's liabilities is 'absolutely key' in determining the funding of his proposed £8.4bn bid for M&S.

The pension fund will play a crucial role in the bid battle and Norgrove and the other trustees are determined to take their time before they respond. There may also be further work to be done to determine the exact position of the fund.

This is likely to take at least a week but it could be several weeks - although the trustees are keen not to be seen dragging their heels.

The latest financial information from M&S showed the pension fund had a deficit of £670m although, including tax benefits of £200m, the figure is £470m.

M&S chairman Paul Myners has made it clear he will not stand in the way of the pension fund trustees in their dealings with Green.

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