High street giant Marks & Spencer Plc (M&S) has rejected a revised £20.5 billion takeover bid by retail tycoon Philip Green.

The new cash bid, put forward on Wednesday, represents a premium of up to 60 cents per share on Green's prior offer.

However, according to M&S chief executive Stuart Rose, the figure was too low for shareholders.

"The board believes that an offer at 370 pence (per share) would significantly undervalue the group and its prospects," Rose said.

Green, the owner of the Bhs department store chain and fashion group Arcadia, is thought to have a personal fortune of £3.6bn.