Berkeley turns down Bovis merger proposal from Schroders
Berkeley Group [LON:BKG] dismissed a proposal to consider merging with rival UK-based housebuilder Bovis Homes [LON:BVS], The Daily Telegraph reported. Berkeley insiders said the company preferred to focus instead on expanding via partnership deals, such as its joint venture with the National Grid, the item reported.
The largest shareholder in Bovis, Schroder Investment Management, had written to Berkeley to suggest an all-stock merger which would be worth around GBP 5bn (USD 6.2bn), the report said. Bovis unexpectedly put out a profit warning late last year and chief executive David Ritchie resigned, the item noted.