A major Gloucestershire-based housebuilder is at the centre of a takeover battle.

Bovis Homes, which has its Western Regional office in Bishop's Cleeve, has received approaches from rivals Redrow and Galliford Try.

In a statement, Bovis said talks with Redrow had ended but discussions with Galliford Try were ongoing.

"Bovis notes the recent press speculation regarding a potential offer for the company," said the statement.

"Bovis has recently received written proposals from Redrow plc and Galliford Try plc outlining potential merger proposals.

"Redrow proposed a share and cash transaction for the company. Galliford Try proposed an all-share transaction for the Company. Both proposals were preliminary and subject to due diligence.

"The board of Bovis reviewed the proposals and concluded that neither reflected the underlying value of the Bovis business and therefore both should be rejected.

"The board also concluded that the Redrow proposal was not in the interests of Bovis shareholders as the cash element of the offer would require shareholders to crystallise value at the current Bovis valuation.

"The decision to reject the proposals was communicated to the two parties. Redrow subsequently indicated that it was not willing to improve the terms of its proposal and discussions were terminated. Discussions with Galliford Try are ongoing.

"In the meantime, the board is making good progress with plans to recover and improve group profitability and enhance return on capital employed. The search for a new chief executive is also progressing well.

"The board of Bovis remains committed to maximising returns to shareholders and will continue to consider all strategic alternatives."

Bovis, which suffered a three per cent fall in profits last year, announced last month that it had set aside £7million in compensation for customers who were sold unfinished houses.

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