Redrow (RDW) chairman Steve Morgan has decided not to make a formal offer for the housebuilder that he founded, after indications that independent major shareholders were unhappy with the valuation of his proposed offer of 152p a share, later increased to 165p.
IC TIP:
Hold
at
153p
Bridgemere, a company controlled by Mr Morgan, together with Toscafund Asset Management and Penta Capital already control 54 per cent of the company, but investors, led by Fidelity, which owns 10.5 per cent of the company, had called the original offer “opportunistic” and were asking for a price of around 220p a share, which would have valued the housebuilder nearer to its peak before the housing slump.
