Redrow has withdrawn from discussions to buy Bovis Homes after its original bid was rejected.
The housebuilder said it would not increase the £3bn bid it made on 12 March, adding that the board believed a new offer was not in its shareholders’ interests.
Redrow made an initial proposal at the end of February for £8.14 per share.
At the time, it said: “Redrow continues to believe the potential combination offers a compelling opportunity to create a combined business with the scale and operational strength to compete more effectively in the growing UK housebuilding market.”
Bovis rejected the offer, saying: “The Redrow proposal was not in the interests of Bovis shareholders as the cash element of the offer would require shareholders to crystallise value at the current Bovis valuation.”
Meanwhile, discussions between Galliford Try and Bovis are ongoing after Galliford Try proposed an all-share merger.
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