A mystery predator is said to be circling Countrywide.
Yesterday’s Mail on Sunday said that according to City sources, a possible buyer is weighing up making a bid.
The paper does not hint whether or not the potential bidder is in the industry or an estate agency outsider, or even whether it is a UK entity.
Shares in Countrywide actually fell last week, suggesting that the City was not expecting any action.
The shares closed at 4.7p on Friday, edging down slightly during the day.
Unnamed sources quoted by the Mail say that a takeover bid for Countrywide would be a huge contrarian bet – “a punt that the shares are priced too low and the market will recover”.
The sources say that an offer would have to be pitched at over 10p, the price offered last summer when Countrywide raised £129m by going to investors for an emergency cash raise to reduce its debt.
Countrywide floated on the stock market six years ago with shares at £3.50 and a market capitalisation of £750m.
Today, its value stands at £79m.
Countrywide declined to comment on the Mail’s story. Share prices shot up in early trading today.
Comments (9)
Very much doubt the Bruces will be involved with this. They will probably have some sort of non-compete clause written in their hefty severence packages.
Hedge fund
Just spoken to the Fairies at the bottom of my garden who told me rumours of a takeover bid are 100% accurate.
Share price up 25% this morning. Still peanuts in actual monetary value.
I read an article a few years ago about Warren Buffett setting his sights on launching a chain of residential estate agents in the UK, expanding his Berkshire Hathaway HomeServices (BHHS) brand. I keep watching and wondering if this is happening. Maybe this could be the opportunity?
Ha who would back him?
Finally Russel Q is making his move?
Ha ha that’s a good one.
More likely to be Kenny Bruce with his big brother pulling the strings?