Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Bovis Homes
Media speculation has prompted statements from both Bovis Homes and Galliford Try over potential acquisition activity. Bovis had proposed an all-share acquisition of Linden Homes, but the belief was that the offer as it stood failed to fully value the target. As such, management have rejected the approach, but given the broad based success of the sector, now doesn’t seem to be the time for consolidation for housebuilders.
Sports Direct
Sports Direct has engaged in a significant sale and lease back deal of much of its Shirebrook plant in the midlands. The deal will see the company receive just over £120 million and although the financial details of the subsequent lease back aren’t disclosed, we do know it will cover a 15 year term and should complete in the next few weeks.
Non Standard Finance
Non Standard Finance continues to battle in its bid to acquire Provident Financial, with a letter in relation to the bid having been published this morning by M&G. The fund manager has added its opposition to the gambit, taking the known quantity of institutional holdings which do not support this acquisition to in excess of 20%. M&G believes the bid is flawed and value destructive, so whilst this cohort still isn’t sufficient to block the deal, it’s looking increasingly difficult.
