Marks & Spencer (M&S) is backing its new chief executive in a controversy over his purchase of shares in the firm.
Chief Executive Mr Stuart Rose said he would step down if he felt he had done anything wrong in buying 100,000 shares last month, shortly after taking a phone call from retail baron Mr Philip Green who emerged with a bid for the group later in May.
"If I had done something wrong I would step down from this company and I will fully, fully cooperate with the FSA [Financial Services Authority] when I see them," Mr Rose told BBC radio.
Mr Rose bought 100,000 of the retailer's shares on May 7th, five days before Mr Green told him in confidence of his plan to bid for M&S and two weeks before the company hired him as its new CEO. The day Mr Rose bought the shares, Mr Green had phoned him to arrange the May 12th meeting.
Mr Rose confirmed he would meet the FSA this week. M&S shares were down 0.8 per cent at £3.59 but have climbed 30 per cent since Mr Rose's purchase.
Late last week, the financial watchdog stepped up its inquiry into dealing in M&S shares in the weeks leading up to May 27th, when Mr Green revealed an approach that led to a bid proposal worth about £8.4 billion sterling.
Marks & Spencer, which is fending off Mr Green's bid, said in a statement today it was satisfied Mr Rose had acted properly.