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Five questions answered on the Marks & Spencer buy-out rumours

Shareholders could block it.

Due to real estate recovery a buy out of the UK retail chain Marks & Spencer has become increasingly more possible. We answer five questions on a possible future deal.

Why might Marks & Spencer be bought out?

According to The Telegraph, due to real estate recovery City insiders believe a buy out of the company could be ever more likely. They say a potential £2bn sale-and-leaseback deal for Marks & Spencer’s property portfolio could allow buyers to seriously run the rule over the company.

Is anyone currently considering investing?

Qatar is a contender, although it hasn’t shown any official interest, it is thought to have been approached.  Qatar has pledged to heavily invest in the UK and already has a 29.9pc stake in Sainsbury’s.

What are the experts saying?

One expert that was not named told The Telegraph:

“If you raised £2bn through a sale-and-lease-back you would need £2bn of equity and about £4bn of debt,” they said.

 “In theory it could be possible now – but there are still lots of issues.”

What issues are there to consider?

Marks & Spencer has a high number of retail shareholders who could block any deal. It also has a £290m pension fund deficit and its long-term strategy has been known to struggle in recent years.

How much are the retail company’s shares currently worth?

On Monday morning they rose to 8.5 per cent.

Heidi Vella is a features writer for