Elliott Advisors eyeing up Taylor Wimpey - report
Activist investor Elliott Advisors has taken a small stake in UK housebuilder Taylor Wimpey, it was reported on Monday.
06 December 2021 10:02:04
Source: Sharecast
According to The Times, the move could be a precursor to a possible takeover.
The US hedge fund stake could be as low as 0.1%, the The Times, sourcing City blog Betaville, said Elliot had bought into the company to encourage corporate activity, which could lead to a potential acquisition.
The blue chip currently has a market capitalisation of £5.95bn. Its shares, which were largely flat as at 0945 GMT, have put on a little over 3% so far this year.
Neither Elliot nor Taylor Wimpey have so far commented on the reports.
The housebuilding industry was shuttered during the first national lockdown. But since then it has boomed as the pandemic bolstered demand for larger homes, which in turn was further supported by the stamp duty holiday and record low interest rates.
Taylor Wimpey completed 15,520 homes in 2019 and just 9,609 in 2020. In the first half of the current financial year, however, it completed 7,300, and in August said it was on track to complete between 13,200 and 14,000 in the full year, with operating profits of around £820m.