Redrow abandons bid for Bovis Homes

Housebuilder Redrow has abandoned its bid for rival Bovis Homes, clearing the path for Galliford Try.

Redrow said on Tuesday that it was not in its shareholders' best interests to up its proposal to Bovis above the level that was rejected.

Instead, it will continue to focus on its "highly successful organic growth strategy" that has delivered approximately 55% compound annual growth in pre-tax profits from financial years 2012 to 2016.

"Redrow's strong land bank and disciplined approach to its operations means it is well-placed to both continue to grow its profits and progressively increase dividend payout rates to 33% in the medium term."

Earlier this month, Galliford Try confirmed that it had approached the board of Bovis with an all-share merger proposal that would give Galliford a 52.25% share in the combined group. Bovis rejected the offer but has continued talks with the company.

At 0856 BST, Redrow shares were up 1.4% to 507p, while Bovis shares were down 0.1% to 872p and Galliford was off 0.8% to 1,495p.