Market's view on Redrow
Published on April 2024
- There is a perception that Redrow’s share price will decrease further prior to the shares conversion date due to previous manipulation by increasing BDEV’s share price, which made the offer look more attractive.
- Concerns have been expressed regarding the potential cancellation of BDEV’s acquisition by the CMA, though it’s believed that the acquisition will not be blocked, comparing it to previous cases like Cobham and Ultra Electronics. It is suggested that BDEV might need to sell some land to alleviate competition concerns.
- It is debated whether the current capitalist system needs reform, pointing out the disparity between the rich and the poor, and the burden on the middle class.
- Questions have been raised regarding the exact number of shares a Redrow shareholder would receive in the new company post-merger, based on their current holdings and the agreed exchange rate of shares.
- Issues have been highlighted about potential manipulation by BDEV to acquire Redrow at a lower value by influencing stock prices before the merger.
- Doubts have been voiced about the fair valuation of Redrow by Barratt, describing the deal as potentially undervalued unless a competing bid emerges.
- Discussion on whether certain freeholds on new builds are actually ‘fake freeholds’, which could impact Barratt’s acquisition decision.