23rd Jan 2017 13:17
LONDON (Alliance News) - Berkeley Group Holdings has rejected a proposed merger with competitor Bovis Homes Group, sources told The Telegraph, following a report from the Sunday Times suggesting a potential combination between the two FTSE 250-listed housebuilders.
The Sunday Times reported that Schroders Investment Management, Bovis's second biggest shareholder - with a 6.4% stake - is pushing for a GBP5 billion merger with Berkeley. Earlier this month, Bovis's chief executive resigned following a profit warning.
However, The Telegraph later on Sunday reported that Berkeley sources said the company had dismissed the call, instead choosing to concentrate on growing through partnerships.
Others also reported Berkeley rejecting the proposition such as Bloomberg, which on Monday morning quoted a person close to the matter saying that Berkeley is focused on growing through partnerships with land owners and isn't seeking acquisitions or mergers for now.
Bovis Homes shares were up 3.7% at 826.50 pence Monday, while Berkeley was up 1.9% at 2,841.00p, both among the biggest gainers in the FTSE 250 index. FTSE 100-listed Schroders PLC was flat.
Swiss bank UBS believes the potential merger "would lack logic" given Berkeley's focus on large value-added sites, the group's preference for partnerships and joint ventures, and its geographic focus on London and the South East of the capital.
http://www.telegraph.co.uk/business/2017/01/22/merger-bovis-berkeley-shaky-ground/
https://www.bloomberg.com/news/articles/2017-01-23/berkeley-group-said-to-reject-bovis-merger-proposed-by-schroders
By Daniel Ruiz; [email protected]
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