News of a potential management buy-out at Countrywide has sparked a feeding frenzy in the property company’s mid-cap stock with shares climbing 12% to 515p.
The news has left the company valued at £879m.
Investment fund 3i said earlier it was working with Countrywide managing director Harry Hill and others within the company’s management team and that an approach would be made “shortly”, but stressed it did not necessarily mean a firm offer would be made.
Countrywide’s estate agency arm, which includes Bairstow Eves, turned last year’s half-year £6.4m operating losses into profits of £19m in the six months to June 30.
Profits for the whole group, which also provides financial services and surveying work, were up to £62.8m from £3.5m a year earlier.
References: EGi News 14/09/06
