Countrywide shares rally amid takeover talks

Countrywide shares (LON: CWD) jumped 42% on Monday as the group enters talks with rival estate agency Connells for a takeover bid.

The company said on Monday that Connells had made an offer of 250p per share – an increase of last week’s closing price of 140p.

Countrywide has given Connells a deadline of 7 December to make or withdraw the offer.

The offer is well above last week’s closing share price, however, Countrywide has seen its share price plummet from this year’s highs of 399,29.

“There can be no certainty that an offer will be made, nor as to the terms of any such offer, should one be made,” said the company in a statement.

“In the light of recent discussions with shareholders, the Board has taken the decision to postpone the general meeting to approve the shareholder resolutions pursuant to the proposed transaction announced on 22 October 2020 until further notice.”

“Connells also believes that significant and sustained investment is required in Countrywide’s technology, network and people to put the business back on a solid footing in a challenging market.”

Countrywide shares (LON: CWD) surged 42% on Monday morning and are currently +46.63% at 212,62 (0932GMT).