(Reuters) - Britain's Galliford Try (LON:GFRD) plc said on Saturday it had rejected a bid from home builder Bovis Homes Group (LON:BVS) as the offer was not in the interests of all shareholders.
Galliford Try said in a statement that Bovis intented to buy Galliford Try's Linden Homes and Partnerships & Regeneration arm in exchange for new Bovis Homes shares.
Sky news, which reported the deal-talks first, cited a Bovis insider saying it was unlikely Bovis would be interested in Galliford Try's troubled construction division, which was responsible for a recent profit warning.
If the companies pursue a full merger, the combined entity could be valued at about 2 billion pounds ($2.5 billion) and a significant chunk of any offer from Bovis for part or all of Galliford Try is likely to be in shares, Sky News said.
Bovis Homes Group declined to comment.