Debenhams boss steps down

Debenhams: New chief executive after nine years

The highly-regarded chief executive of Debenhams, who resigned amid rumours he will bid for Marks & Spencer, may reveal his hand within the next two days.

Terry Green, Debenhams' chief executive for almost nine years, stepped down on Wednesday morning, announcing he was pursuing "a new business opportunity".

The resignation, which sees trading director Belinda Earl take charge at the retailer, came amid speculation that Mr Green would lead a hostile bid for Marks and Spencer, the ailing high street giant.

While BBC News Online could gain no official confirmation of the rumour, a spokesman for Debenhams said: "His decision may become clearer later this week."

Shares in Marks and Spencer rose 8.5% to close at 228p on the rumours, which prompted a mixed reaction from analysts.

"Ideal for bid"

One analyst told Reuters said Mr Green "would be the ideal man to head up a leveraged bid", while another told the news agency: "I can tell you he's not going to M&S".

Belinda Earl: Takes over the helm at Debenhams

A spokesman for M&S said: "We can confirm that Terry Green has not been approached by M&S to join the company."

The Debenhams spokesman said: "The resignation is utterly amicable. You will have to ask Mr Green his plans, but he is not speaking to anybody about it at the moment."

Terry Green, who was with Debenhams for 15 years in all, was linked to a hostile takeover bid launched by entrepreneur Philip Green last December.

He was one of three executives sent legal notices by Marks and Spencer in June asking them to declare any shareholdings in the retailer.

Takeover shelved

Philip Green backed down in February, while reserving the right to make a later bid, should a third party become involved. He bought BHS the next month.

Belinda Earl, a former Harrods employee, joined Debenhams in 1985, rising to trading director in 1997.

Debenhams shares closed down 17.5p at 182.5p in London on Wednesday.

"It's most probably because I am not known," Ms Earl said. "The City doesn't like surprises and this was totally unexpected."