Shares in Marks & Spencer rebounded 6.7%, or 14.5p, to 231.5p yesterday amid rumours of a looming takeover, as chief executive Sir Stuart Rose prepared for a potentially difficult annual meeting today.

Shares in Marks & Spencer rebounded 6.7%, or 14.5p, to 231.5p yesterday amid rumours of a looming takeover, as chief executive Sir Stuart Rose prepared for a potentially difficult annual meeting today.

Those linked with a possible bid range from the Qatari royal family, which attempted to buy J Sainsbury last year, to BHS owner Sir Philip Green, who tried to buy M&S for £1.9bn four years ago although he has denied stakebuilding.

Speculation includes a potential merger with Sainsbury, which is seen by some analysts as having a similar middle class customer base. There were rumours of a tie-up between the two last year.

Others have simply put the move down to investors who have bet on the company's share price falling closing their positions. They do this by borrowing shares from investors and selling them in the hope of netting a profit if they can buy back at a lower price. Closing their positions would require them to buy more stock, pushing up the price.

It is also thought that Charles Wilson, chief executive of Booker and former M&S executive director for IT, logistics and property has also bought shares in the company, giving further support to its price.

M&S shares had been trading at around 320p before the company revealed last week that it had seen a 5.6% drop in like-for-like sales in the last quarter. They hit a low of 210.25p yesterday before bouncing back on the speculation. Yesterday's move valued the company at £3.6bn.

Shareholders are due to vote on Rose's appointment as executive chairman at the group's annual meeting today. Around 30% of its shareholders are expected to abstain or vote against the plans due to concerns that combining the chief executive and chairman roles puts too much power in Rose's hands.