Responding to “recent media speculation”, Galliford Try confirmed this morning that it received a preliminary proposal from Bovis to acquire Galliford Try’s Linden Homes and Partnerships & Regeneration divisions in exchange for new Bovis Homes shares.

The statement added: “The Galliford Try board carefully considered the Bovis Homes proposal together with its financial adviser, Rothschild & Co. The board rejected the Bovis Homes proposal as it believes it does not fully value the Linden Homes and Partnerships & Regeneration divisions and is not in the interests of all shareholders.”

Buying the Linden Homes and Partnerships & Regeneration businesses would leave Galliford with its construction business, albeit one which it plans to vastly reduce after the firm confirmed plans to cut 350 jobs last week.

Bovis Homes, which is led by former Galliford Try boss Greg Fitzgerald, issued its own statement, which read: “Bovis Homes confirms that following an initial proposal, some preliminary discussions and the receipt of some high-level financial information from Galliford Try, Bovis Homes submitted a revised proposal (subject to detailed due diligence) on 8th May 2019 regarding the potential combination of Bovis Homes and Galliford Try’s Linden Homes and Partnerships & Regeneration businesses for consideration of £950m together with the assumption of Galliford Try’s 10-year debt private placement of £100m, with the consideration to be satisfied via the issuance of new Bovis Homes shares directly to Galliford Try shareholders.”

Bovis said the two companies were no longer in discussions.