The retail entrepreneur that wants to take over Marks & Spencer is at the centre of insider share-dealing allegations.

In December last year, Mr Philip Green's wife bought 9.5m shares in Marks & Spencer, according to reports in the Sunday Times and the Observer newspapers.

On 13 December, her husband announced his interest in buying the company, sparking a rally in the stock. The newspaper estimates that his wife made a paper profit of £2.5m.

Green says its "straightforward"

On Sunday, Mr Green dismissed the allegations.

"My lawyers have letters from the Takeover Panel and as far as I am concerned its all very straightforward," he said.

"My advisors will be able to clarify the position with the Takeover Panel tomorrow ( Monday)," Mr Green said.

Mr Green is quoted in the Sunday Times as saying that the Takeover Panel had cleared Mrs Green's purchases before she bought the shares.

If someone who is in possession of secret information that can affect the value of a share buys or sells shares, this can constitute insider dealing.

However, an exception can be made if a company is being taken over.

The bidding group may buy shares in the target company. These purchases are legal if they are disclosed.

Targeting M & S

Mr Green's reputation as an entrepreneur was sealed when he completed a buyout of Sears last year.

He and a consortium of investors, which included the Barclay brothers, bought the company for £548m. His sales of the different parts of Sears, which included Miss Selfridge, Wallis and Warehouse, raised £729m, a profit of £181m for Mr Green and his backers.

Marks & Spencer is now the target of Mr Green's attentions, though no formal bid has been launched yet.

M & S has seen its profits and share price slump in the past two years.

It appointed Belgian retail boss Luc Vandevelde as its new executive chairman.

Mr Vandevelde has the task of turning the company around, as well as bolstering its defences against any takeover bids that are being prepared.