Monday 27 May 2019 1:36 pm

Galliford Try rejects takeover bid from rival Bovis Homes

Housebuilder Galliford Try has rejected a takeover bid from rival Bovis Homes, saying the offer undervalued the firm’s business and was not in the interests of shareholders.

Read more: Bovis Homes Group in talks with Galliford Try over housebuilding merger

Galliford Try confirmed it had received an offer from Bovis for its Linden Homes and Partnerships & Regeneration divisions, which would be acquired through a share swap deal.

The housebuilder said it had “carefully considered” the takeover bid with its financial adviser, Rothschild & Co, but had decided to reject the deal.

“The board rejected the Bovis Homes proposal as it believes it does not fully value the Linden Homes and Partnerships & Regeneration divisions and is not in the interests of all shareholders,” the company said in a statement.

Under the proposals, first reported by Sky News, Galliford would have remained an independent UK-listed company focused on construction.

Last week Galliford said it will cut up to 350 jobs in its construction division, which has suffered a spell of poor trading and was the driving force behind a recent profit warning.

Bovis is thought to be uninterested in taking on this part of its rival’s business, which could be sold to a third party, Sky News reported.

Read more: Bovis Homes shares climb on upbeat trading progress

The failed bid is a reversal of an unsuccessful proposal in 2017, when Galliford tried to take over Bovis, which was then its smaller rival. It is unclear whether or not Bovis will submit a revised bid.