Galliford Try has rejected a £950 million takeover bid from rival housebuilder Bovis, sending shares soaring on the back of the news.
The house builder confirmed it had received a bid from Bovis, however it said it had rejected the offer after concluding that ‘it does not fully value the Linden Homes and Partnerships & Regeneration divisions and is not in the interests of all shareholders.’
Earlier this year, shares in Galliford Try plummeted after the company issued a profit warning.
At the time, the firm said it expects profits to be £30-£40 million lower than previously expected.
As a result, Galliford Try said it was putting its construction unit under “strategic review”.
The house builder was formed in 2000 and it has gone on to be a constituent of the FTSE 250 Index on the London Stock Exchange.
Its construction projects have included the restoration of the London St.Pancras Renaissance hotel, the centre court of Wimbledon and the recently completed Aberdeen Western Peripheral Route.
The Aberdeen Western Peripheral Route had been delayed amid to weather issues and the collapse of Carillion last year.
Shares in the firm (LON:GFRD) are currently trading +3.53% as of 11:50AM (GMT). Meanwhile, Bovis shares (LON:BVS) are trading broadly flat on the announcement.