Philip Green is expected to raise his offer for Marks & Spencer to £8.8bn as the company ponders ditching its £15m homeware ‘Lifestore’.

Newspaper reports state that Mr Green’s new bid would value the company’s shares at between 380p and 390p and would allow current shareholders to hold equity in the new company, so as to reap any rewards made by Mr Green.

Reports also hint that M&S insiders do not believe an offer below 400p will be accepted.

Mr Green’s previous £7bn cash bid to include a 25% stake in his bidding vehicle was rejected earlier this month.

The company is getting ready to fight a new bid by revaluing its portfolio of freehold property.