The Financial Times reports this morning that Fidelity Worldwide Investments, which owns 10.5% of Redrow shares, sees Mr Morgan’s bid as ‘opportunistic’ and plans to oppose him.
Mr Morgan is executive chairman of the company and owns 40.4%. Last month he made a provisional offer of 152p per share to buy the remainder of the company – valuing it at £660m. His backers include the second biggest shareholder, Toscafund Asset Management, which owns 13.8%.
Under takeover rules, Mr Morgan must table a firm bid by 28 September if he wants to proceed.