Marks & Spencer has received a second proposal in relation to a possible offer. Philip Green has upped the stakes with a slightly less opaque revised offer of not less than 370p in cash per share. Again, this has been rebuffed by the M&S board of directors as significantly undervaluing the group and its prospects. The board met for 90 minutes to discuss the offer, before ringing Philip Green to say "no thank you". The first bid took seven hours to reject.

So where do shareholders stand now? The shares are in limbo until Stuart Rose, the new chief executive, maps out his strategy on July 12. This is a double-edged sword, as he will take the opportunity to set out plans to improve operating performance, at the same time as providing an update on current trading.

Philip Green is currently waiting in the wings, and would look to pounce on any slip-up. The market is expecting him to make a third and final shot. If he does, it would have to be at a level that the board feels compelled to put to shareholders, even if it is without their approval.

In the meantime, the stock market has shown overall progress over the past six weeks. The FTSE 100 fell below the 4400 level in early May - a buying signal for many - and is currently nudging the 4500 level.

BT shareholders will have been cheered to see the share price finally showing some upward momentum. The shares have not traded at this level in nearly a year. Progress in the roll-out of broadband is thought to be going better than predicted, meaning that BT can be thought of as a growth stock once again.

Another share that has been gaining favourable attention is BSkyB. There had been concern that the appointment of James Murdoch as chief executive at such a tender age was too closely connected to the largest shareholder, his father Rupert Murdoch, just as the company turned profitable and able to pay dividends.

BSkyB has now acted to counter the growing take-up of Freeview by announcing the launch of a 200 channel free-to-air satellite service on a £150 set-top box. This cunning ploy may lead to reluctant terrestrial TV-only viewers succumbing to the attractions of Sky, and further boosting the cash coffers of BSkyB.

Markets rise on news of companies announcing increased profitability. This week sees another house builder announce record profits. Thursday sees Crest Nicholson report half-year numbers. These are likely to directly conflict with Bank of England Governor Mervyn King's warning last week that the current increase in house prices is unsustainable. Of most importance will be any news on sales already booked for the second half of the year. Surely, the Governor of the Bank of England cannot be wrong?

More positives are also expected tomorrow, when Stagecoach and Dixons announce full year results.

GW Pharmaceuticals announced half year results yesterday. This is the green leaf company which is developing a range of medicinal pain relief products based on cannabis. Drug development is a costly business, and at this stage it is not surprising to announce another big set of losses. Most of those producing rather more traditional green leaf products generate far greater returns, one suspects.

For investment advice contact Anthony Platts on 01642 608855.

Published: 22/06/2004