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Sun May 26 2024

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Morgan drops Redrow takeover plan

19 Oct 12 Redrow chairman Steve Morgan has dropped his bid to take the housebuilding company he founded back into private ownership.

Steve Morgan
Steve Morgan

On 31 August Mr Morgan made an offer, through his investment vehicle Bridgemere Securities, together with Toscafund Asset Management to buy out other shareholders and de-list the business. The offer was worth 152 pence per share. The price has since topped 160 pence amid takeover fever. Mr Morgan reportedly proposed improving the offer to 165 pence per share.

Mr Morgan, who set up the business in 1974, already owns 40.4% and Toscafund has 13.8%.

However, the bid was opposed by Fidelity Worldwide, owner of a 10.5% stake and third biggest shareholder. It wanted 220p a share to do a deal.

Yesterday Bridgemere, Toscafund and Penta announced that discussions with Redrow in relation to an offer had now been terminated and that there is now no intention to make an offer for Redrow.

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