Redrow Declines After Group Led by Chairman Ends Bid Talks
Redrow was down 3.8 percent at 156.4 pence at the 4:30 p.m. close of trading, the biggest decline since June 25. The shares closed yesterday at the highest since October 2009. Today’s volume was 10 times the three-month daily average.
Bridgemere Securities Ltd., led by Morgan, along with Toscafund Asset Management LLP and Penta Capital LLP, yesterday said they had terminated a takeover approach announced Aug. 31. The group had said it may offer 152 pence a share for Redrow.
The companies said they reserve the right to make or participate in an offer for Redrow within the next six months. Morgan, 59, bought 15.4 percent of Redrow stock in May, lifting the stake he controls to about 40 percent.
Morgan left Redrow in 2000 and returned as chairman a decade later after becoming dismayed that its homes appealed to lower-income buyers. In a 2010 interview, Morgan said the company he founded in 1974 was “in my blood.”
Redrow has had the fifth-biggest gain of seven homebuilders in the Bloomberg EMEA Home Builders Index (BEUHBLD) this year, which has risen 56.8 percent. The homebuilder on Sept. 19 said full-year profit more than doubled, beating analysts’ estimates, as it sold more expensive homes.
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