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UK builder Bovis takes £2.8m hit from failed merger talks

42151876 - 05_04_2017 - BOVIS-M-A_GALLIFORDTRY.jpg
British housebuilder Bovis , which was subject to two failed buyout bids earlier this year, said it would take a £2.8 million(S$5.03 million) hit from the talks and a review conducted in February after the firm warned on profits.

[LONDON] British housebuilder Bovis , which was subject to two failed buyout bids earlier this year, said it would take a £2.8 million(S$5.03 million) hit from the talks and a review conducted in February after the firm warned on profits.

Bovis, which said sales so far this year are in line with reduced building expectations, warned on profits at the end of 2016 after it failed to build enough homes, prompting its chief executive to quit.

In April, British housebuilder Galliford Try pulled out of a £1.2 billion attempt to buy Bovis after the two failed to agree on price, a week after another potential suitor Redrow also pulled out. "The group will incur one-off advisory fees of around £2.8 million related to the merger proposals... and the group's strategic review announced in February," the firm said.

Bovis has hired former Galliford chief Greg Fitzgerald and shareholders will vote on his pay during Tuesday's annual general meeting.

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