Analysts fear that shares may drop to about 310p if it is believed that Green will drop his bid for Marks & Spencer.

Shares were down 6.75p to 356.75p last night following Wednesday’s rejection of Green’s proposed 370p a share.

However, analysts and M&S shareholders backed the board’s decision to reject Green’s offer, according to The Times today.

It is expected that he will need to make a cash bid at more than £4 a share to be taken seriously by investors.