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Heron drops Crest bid.

Property group the Heron Corporation has decided to drop its possible bid for housebuilder Crest Nicholson - which is behind major development work in Birmingham - stating it had been unable to gain enough information to make a firm offer.

'Due to the continued absence of access to information on Crest Nicholson, Heron has no alternative but to confirm that it will not make an offer for Crest Nicholson within the next six months,' Heron said in a statement.

Takeover speculation surrounding Crest Nicholson had been rife after Heron had gradually built up a stake of over 23 per cent in the group.

In March Heron, headed by entrepreneur Gerald Ronson, said it could make an offer for Crest valuing the company at between 345-430p a share.

An offer of 430p a share would have valued Crest at around pounds 480 million.

However, Crest had consistently said Heron's offer undervalued the company, and the Takeover Panel gave Heron until May 4 to decide on whether or not to make an actual bid. Heron still has a stake of 23.4 per cent in Crest Nicholson, and the property group said it reserved the right to come back with a new offer in six months time.

Among other Midland projects, Crest Nicholson is developing the Park Central scheme with Birmingham City Council and the Optima Community Association
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Title Annotation:Business
Publication:The Birmingham Post (England)
Date:May 5, 2005
Words:224
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