Morgan gets another Redrow bid extension

STEVE Morgan, chairman of quoted housebuilder Redrow, has an extra two weeks to table a formal offer the business.

A week-long extension had already been granted to October 4 but this has now been extended to October 18 following an application by the company.

Last month Morgan’s investment vehicle Bridgemere Securities proposed a takeover at 152p a share which he said was a 23% premium to the 90-day trading average of 122.7p.

Fidelity, the third biggest shareholder with 10.5%, is said to oppose the offer, believing it undervalues the business. It is understood to be holding out for 220p.

Mr Morgan, who also owns Wolverhampton Wanderers, has made the move with two other investors, Penta Capital and the hedge fund Toscafund Asset Management, which holds 13.8% of Redrow shares.

He already owns 40.4% of the Deeside-based business, a stake which increased from 29.2% in May after Bridgemere underwrote a poorly received £80m fundraising.