Crest Nicholson Shares Dive As Bellway Retreats From Takeover Bid

Bellway Abandons Crest Nicholson Takeover Bid

UK Homebuilder Ends Pursuit of Rival

Newcastle-based Bellway has walked away from its potential takeover of rival housebuilder Crest Nicholson. The decision comes after a months-long pursuit that included several offers from Bellway.

Bellway's Initial Offer

Bellway made its first all-share takeover approach in late April, offering 0.089 shares per Crest Nicholson share. The offer valued Crest Nicholson at around £720 million.

Crest Nicholson's Response

Crest Nicholson initially rejected Bellway's offer, saying it undervalued the company. However, Bellway sweetened its bid in May, offering 0.107 shares per Crest Nicholson share. This revised offer valued Crest Nicholson at around £760 million.

Management Support

Crest Nicholson's management eventually backed Bellway's latest offer, saying it was "fair and reasonable." However, the deal still required the approval of Crest Nicholson shareholders.

Bellway's Withdrawal

Despite Crest Nicholson management's support, Bellway has now decided to abandon its takeover bid. The company said that "after careful consideration, we have concluded that it is not in the best interests of Bellway shareholders to proceed with the acquisition."

Conclusion

Bellway's withdrawal from the takeover bid leaves Crest Nicholson independent for the time being. The company's shares fell by over 7% in early trading following the announcement. It remains to be seen whether another potential suitor will emerge for Crest Nicholson, or whether the company will continue to operate independently.