Christopher Sporborg, the chairman of buyout target Countrywide, has warned that his company faces plummeting profits if the housing market turns sour following last week’s interest rate rise.
Profits at the company plummeted from £49m in 2003 to £28m in 2004, the last time the Bank of England embarked on a cycle of rate rises.
The Observer meanwhile says shareholders look set to reject 3i’s bid at tomorrow’s extraordinary meeting.
The paper says Countrywide shares were trading at 515p a share on Friday, well below the offer price, indicating that the market expects to 3i offer to be kicked out.
References: Sunday Telegraph Business 14/01/2006 page 2, Observer Business & Media 14/01/2006 page 2
