RETAIL entrepreneur Philip Green is considering a takeover of Marks & Spencer.

His became a household name after transforming the fortunes of ailing high street group Bhs.

The London Stock Exchange reacted excitedly last night after the announcement that Mr Green hoped to buy what is probably Britain's best-known high street store chain.

Following the news that Mr Green would be asking the M&S board's approval for a bid during the coming days, shares rose nearly 19 per cent, or 54p, to 345p, valuing the company at £9.7bn.

Any offer would be made by Revival Acquisitions Ltd, a company owned by Mr Green and members of his family.

A statement by the company said: "Any proposal would involve a mixture of cash and shares in a new company which would seek a listing. There can be no assurance that any offer will be made."

Mr Green, believed to be worth about £3.6bn, has long been linked to M&S and in 1999 appointed financial advisors to look at a bid.

An offer failed to materialise, and Mr Green focused on building an empire of established brands that include Miss Selfridge, Top Shop and Dorothy Perkins.

But he was unsuccessful in his attempt to buy Safeway last year, blaming competition hurdles for his decision to pull out.

Anthony Platts, of Tees Valley stockbrokers Wise Speke, said: "Marks & Spencer has been considered undervalued for some considerable time.

"The recent results indicated that the recovery had slowed and the management were scratching their heads as to what to do.

"Philip Green obviously feels he can do better, and bring some cheer to long-suffering M&S shareholders and shoppers."

The possible offer comes only two days after M&S said its share of the clothing market had fallen by 0.2 per cent in the year to April 3.

Bottom-line profits were £781.6m - well short of the £1.2bn made in 1998.

Under the leadership of Luc Vandevelde, M&S turned around years of falling sales and profits into a celebrated recovery two years ago.

Overhauling stores, closing overseas interests and introducing new ranges, such as the successful per una womenswear line. The group celebrated its best operating profits in four years, and Mr Vandevelde declared the company had "turned the corner".

That proclamation proved premature as the recovery faltered, and despite the introduction of new initiatives, including the Gateshead Lifestore, M&S is still regarded as a wounded animal.