Philip Green, the man who wants to take over Marks & Spencer, has denied allegations of insider dealing.

The retail entrepreneur now claims there is a campaign to discredit him.

His denial comes as Marks & Spencer tries to find out the names of his allies and what holdings they have in the company.

M&S has served Section 212 notices on Asda chief executive, Allan Leighton, Debenhams chief executive Terry Green and Bass finance director Richard North, reports say.

Section 212 notices allow a company to demand that an individual disclose whether he or she owns shares in the business.

Share dealings

Late last year, Mr Green announced his interest in buying Marks & Spencer. The news sparked a rally in the company's stock, which had been hit by the slump in profits.

A few days previously, his wife had bought shares in the company and is now estimated to be sitting on a profit of £2.5m.

In a statement to the Stock Exchange on Tuesday, Mr Green said he had "behaved entirely properly throughout this matter, complying with all the relevant laws and regulations".

Marks & Spencer has served a notice on Mr Green, forcing him to declare his and his wife's interests in the company.

The story broke on Sunday and Mr Green expressed surprise that "copies of his response to the section 212 notice should have been provided to selected newspapers in what appears to be part of an unjustifiable campaign to discredit him".

The takeover exception

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.