The business owned by South African entrepreneur Mark Paulsmeier has distanced itself from a potential acquisition of struggling UK retailer Marks & Spencer.

The Paulsmeier Group said it had been considering a potential management buyout of the chain but had pulled out "in the light of developments."

Paulsmeier said: "The group is not leading, nor contemplating making, any takeover bid for Marks & Spencer Plc and would not wish to be part of any such bid."

The group stepped away from a potential acquisition after M&S said it was looking for its employees' support of a 410 pence per share management buyout.

Philip Green, who became embroiled in an infamous takeover battle with M&S last spring, on Tuesday denied reports that he was preparing another bid for the company.

Marks & Spencer, once a celebrated stalwart of the UK retail sector, has seen its future become more and more clouded over recent years as sales have continued to plummet.