HBOS considers Quintain offer
16/07/2007
Banking group HBOS is reportedly considering making a takeover offer for Quintain Estates & Development Plc, with an estimated value of £1.2bn.
No formal decision has been made to proceed with the bid, but preliminary plans are said to be underway.
Quill securities, a unit of HBOS, said in a statement "Such evaluation is at an early stage and whilst its options include making a proposal to the board concerning an offer for the company, there can be no certainty that any such proposal will be made."
Quintain, which is currently regenerating the area around the new Webley Stadium, has been valued at £1.16bn.
HBOS, who already hold a 11.9 per cent stake in the company, is reported to have hired investment bank Merrill Lynch to advise on the possibility of a takeover. If the bid goes ahead, HBOS is expected to take the company private. It is thought that a deal with the bank may be attractive to Quintain's management team, as the company has been assessed by analysts as at risk from a buyer who could break up the company for some months.
