(Adds details, background)
LONDON, March 28 British housebuilder Redrow
said on Tuesday it did not intend to make an offer for
rival Bovis just over two weeks after its approach was
rejected as too low, leaving one potential bidder for the ailing
Bovis, whose CEO quit in January following a profit warning
resulting from a failure to build enough homes on time, has been
the subject of takeover speculation since a major shareholder
wrote to another builder in January suggesting a tie-up.
Earlier this month, Bovis rejected bids from both Redrow and
Galliford Try but said it remained in talks with the
latter, and also saw a viable future as a stand-alone firm.
On Tuesday, Redrow said it would not increase its bid for
Bovis, withdrawing from the process.
"The Board of Redrow has determined that it is not in its
shareholders' best interests to increase its proposal to Bovis
above the level which was rejected by the Board of Bovis," the
firm said in a statement.
A tie-up between Bovis and Galliford Try would create
Britain's fifth largest housebuilder by volume, although the
firms would likely seek to cut costs in what would be the first
major consolidation in the sector for nearly a decade.
Galliford's proposal valued the entire issued equity of
Bovis at 1.19 billion pounds ($1.45 billion), or 886 pence per
It also envisaged an equity split in the combined group of
52.25 percent for Galliford shareholders and 47.75 percent for
(Reporting by Costas Pitas; Editing by Kate Holton and Mark