UK's Crest Nicholson says Bellway's new proposal undervalues group By Reuters

Crest Nicholson's Response to Bellway's Takeover Offer:

• Crest Nicholson deemed Bellway's revised 650 million pound all-share takeover offer as undervaluing the company, leading to an 8% increase in shares.
• Bellway's bid valued Crest at 253 pence per share, representing a 30% premium to Crest's closing share price on the day of the bid.
• An earlier offer from Bellway was rejected by Crest in April.

Consolidation Efforts in UK's Homebuilding Industry:

• The latest takeover bid by Bellway highlights consolidation trends in the UK's homebuilding sector.
• Barratt's acquisition of Redrow and Vistry's purchase of Countryside earlier this year are examples of industry consolidation.

Housing Market Challenges in Britain:

• A shortage of properties in the UK has been driving up housing costs, making it difficult for many, especially younger individuals, to own homes.
• The competition regulator has emphasized the need for builders and the government to address the housing shortage issue.

Financial Performance and Outlook of Crest Nicholson and Bellway:

• Crest Nicholson warned of a significant drop in annual profit and reported an 88% decline in half-year earnings.
• In contrast, Bellway raised its annual average selling price forecast and highlighted strong trading during the spring selling season.

Stock Performance:

• Crest Nicholson shares were trading higher at 230.20 pence, while Bellway stock was down 2.2% at 2,658 pence early on Friday.