Shares in embattled Connaught rise on speculation of break up bid by Breeden
Shares in struggling social housing group Connaught rose for a second day yesterday on speculation it may be a takeover target.
Breeden Capital announced it has doubled its holding in the firm to 13 per cent, despite Connaught posting profit warnings at the end of last month. Since then it has lost 65 per cent of its value and the rumour mill suggests Breeden may seek to break up the group.
However, analysts poured cold water on this theory, claiming Breeden will hold the stock.
Persistent speculation also abounds that a private equity shark is circling, with 3i thought to be eyeing the prize.
The firm’s stock was up eight per cent in morning trading, ending the day up 2.26 per cent at 117.9p.
Breeden also owns a three per cent stake in Connaught’s rival Mears.
Connaught became one of the first big victims of government belt-tightening, after it said a number of social housing sector contracts would be delayed.