Wellcome Trust builds up stake in Marks & Spencer

The Wellcome Trust medical charity has revealed that it has been building a stake in retailer Marks & Spencer (M&S).

Britain’s largest charity confirmed it has taken a 2.5% shareholding, acquiring 39.35 million shares, as a long-term investment.

Following the news, shares in M&S fell 2% as Wellcome emerged as the mystery buyer emerged and disappointed traders that a potential bidder had been eyeing up the retailer.

The Wellcome Trust’s £15 billion investment fund is managed by Danny Truell, who is considered to be one of the most influential fund managers in the City. Last year, the charity achieved record returns of 17%.

Last month, Britain’s biggest clothing retailer issued a profit warning which saw over £1.2 billion wiped off its market value.

The company also warned of difficult times ahead for the UK economy and said its food business had been affected by a cut back of consumer spending.

In the last 12 months alone, shares in M&S have fallen by almost 60% as it deals with the fallout from the credit crunch.

There is speculation that former chief executive of the De Vere hotels group, Carl Leaver, is the favourite to replace Sir Stuart Rose, when he departs in two years time.

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