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M&S in shareholder rebellion

07/07/2008

Marks & Spencer could face a shareholder backlash this week over plans for Sir Stuart Rose to take on the role of executive chairman.

At this week's annual general meeting between 20 and 30 per cent of shareholders are predicted to vote against the move and a large number could well abstain on the vote to express their displeasure.

Last week shares at Marks and Spencer slumped after the retailer reported a 5.3 per cent fall in like-for-like sales for the first quarter.

M&S said sales were down 4.5 per cent in food and 6.2 per cent in general merchandise, citing stumbling consumer confidence behind the falls.

Sir Stuart said last week: "Consumer confidence levels have deteriorated markedly and market conditions have become more challenging.

"Four years ago, M&S was a weak business in a strong market. Today, we are a strong business in a weak market."