Investors to get 560p per share in Persimmon bid

Shareholders in house builder Westbury have been sent the details today of Persimmon’s £643m takeover bid for the firm.

The shareholders have until 6 January to accept the offer, which will give them 560p cash per share.

The new firm will build 16,700 units in 2006 across England, Scotland and Wales. Persimmon believes the takeover will create synergy benefits of over £25m in 2006 rising to more than £40m the following year. However there would be a £12m one-off cost to the deal.

Persimmon also put out upbeat trading predictions today ahead of its preliminary results due at the end of the month. It expected the results would show that 2005 completions would be 12,600, up 240 on 2004. It said turnover was likely to increase by 8% on 2004 from £2.13bn to £2.3bn. It also expected the average selling price to rise from £172,431 last year to £180,500 this year.