Take your pick
Redrow shares gained 8% on bid rumours yesterday. So far so normal. But what were the rumours? Take your pick:
- Bovis Homes might be considering a bid, says the FT;
- Redrow will merge with Barratt, says the Independent;
- Toscafund, a hedge fund with 27% of Redrow, also has a long position in Washington Mutual, a US bank subject to swirling rumours of its own. According to this alternative theory, also cited in the Indpendent, takeover speculation about Wa-Mu is driving the price in Redrow. [Quite how wasn’t explained];
- The Daily Telegraph quotes a trader as saying that Lehman Brothers had loaned out Redrow shares to short-sellers and, having (ahem) troubles of its own, was now having to call these in, driving up the price;
- More prosaically, The Daily Telegraph also suggests that Redrow has been approached by Persimmon, or maybe Bellway, about a takeover.
One British builder, one day, five different market rumours. It’s that kind of market at the moment.
