Persimmon is not the only point of interest today in the housebuilding sector. Rival Redrow is facing an attempt by founder and former chairman Steve Morgan to grab a seat on the board, in an executive role to boot.
Morgan - who floated Redrow in 2000 and bought Wolverhampton Wanderers football club in 2007 - has lifted his stake in the builder from 16.96% to 29.9%. This includes a direct shareholding of 23.46% and 6.46% through contracts for difference.
He bought the shares from Toscafund, the hedge fund business run by former banking analyst Martin Hughes which has held stakes in a number of poorly performing housebuilders. Tosca still holds 20.5% of Redrow.
Redrow has greeted Morgan's proposals with some caution: "The board remains committed to its high standards of corporate governance and is seeking clarity on these board changes and other critical aspects of Mr Morgan's proposals."
Panmure Gordon commented:
"Redrow has reported the first instance of corporate activity and interest amongst the quoted housebuilders today. Although further clarity is needed on the proposals suggested by Steve Morgan, we believe that the shares may outperform in the short-term, although our recommendation remains hold."
Redrow shares are currently 18.75p higher at 153.75p.
