Marks & Spencer (M&S) shares fell as traders reckoned its rejection of Mr Philip Green's improved bid could end his courtship of the high-street stalwart.
Brokers widely advised investors to book profits on the stock, up more than 20 per cent since Mr Green made his first bid. After his second attempt was rejected yesterday, a successful bid was unlikely. Marks and Spencer fell 2.8 per cent.
Traders said Marks & Spencer had further to fall after losing its bid premium, although hopes that new chief executive Mr Stuart Rose could engineer a turnaround were expected to ease the fall.
Mr Rose is to outline his strategy on July 12th.
"People have lots of belief in Stuart Rose because of the way he turned around Arcadia," one trader said. "We see it coming down to about 320p but we would start to buy at that level."