Redrow struts its stuff in attempt to woo Bovis

House builder Redrow “fanned its tail” at the shareholders of struggling rival Bovis Homes today with a surprise boost to its own profit hopes.

Bovis, which rejected a £1 billion cash and shares offer from Redrow last month, is in talks over a merger with Galliford Try.

But Redrow’s brief, unscheduled update — which said profits would be “at least £306 million” — was seen by City analysts as the precursor to an improved offer.

Both Redrow and Galliford Try have until April 9 to make a “put up or shut up” offer under takeover rules.

Redburn analyst Will Jones said: “Given the ongoing bid situation for Bovis, we can only assume this is a show of strength ahead of a revised offer.”

Shore Capital’s Robin Hardy said: “If this is the equivalent of the peacock fanning its tail in the hope that another swing at a Bovis offer will be more welcomed, we would still be cautious. It could become a millstone.”

Despite the profit upgrade, Redrow’s shares remained virtually unmoved, easing 0.9p to 492.40p. Bovis ousted its boss David Ritchie in January after a profit warning.