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Bovis has offered to buy the competing company Galliford Try at a price of £ 950 million before being rejected, the group said Tuesday.
In a statement, Bovis said it had proposed the sum, as well as the acquisition of Galliford Try's £ 100m private debt offering in exchange for the activities of its rival Linden Homes and Partnerships & Regeneration. The consideration would have been paid with new Bovis Homes shares.
The deal would not have involved a global merger with Galliford Try, which would have remained a separate UK-listed construction group, Bovis said.
It was revealed this weekend that Galliford Try had rejected the offer, arguing that it was too low.
In a separate statement Tuesday, Galliford Try reiterated this badertion, claiming to have "carefully studied" Bovis' offer, but that he "believes that the Linden Homes and Partnerships & Regeneration divisions are not fully valued and that it does not serve the interests of all shareholders. "
The two companies are among the top 10 UK home builders, with Bovis the largest, with a market valuation of around £ 1.3bn, compared to £ 550m for Galliford. However, their stock prices have fallen sharply in the last 12 months.
The proposal comes two years after the failure of negotiations on the full merger between the two companies. Galliford tried to buy his biggest rival but was rejected because both groups did not reach an agreement on the badessment.
Bovis experienced a reversal under Greg Fitzgerald – formerly head of Galliford Try – due to his build quality issues. Fitzgerald, whose ambition is to continue to grow the company, led the supply of his former employer's housing construction business.
Additional report by George Hammond in London
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