Surrey's Crest Nicholson rejects second takeover bid from Bellway Homes

Weybridge-headquartered housebuilder Crest Nicholson rejected a second takeover bid from Bellway Homes, its Newcastle-headquartered rival, it was reported last week.

The approach, made on May 14, was the second in two months and Crest said the latest offer "significantly undervalued" its business.

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If accepted, it would reportedly have given Crest investors 0.093 shares in Bellway for each of their current shares, valuing Crest shares at 253 pence, or a 19% premium.

A spokesperson for Bellway is reported to have said: "The board of Bellway believes there is compelling strategic and financial rationale for a combination of Bellway and Crest Nicholson which would bring together the strength of each business with complementary brands."

Last week, Crest Nicholson reported a pre-tax loss of £30.9 million in its first half to end-April, down from a £28.4 million in the same period a year earlier.

It said it expected to make an adjusted pre-tax profit of between £22 million and £29 million for the full year, which fell below analyst forecasts of around £39 million

Crest has confirmed it had also rejected an earlier all-share approach from Bellway on April 25 this year.