Shares in housebuilder and developer Wilson Bowden soared 5% to £14.50 on Monday, as speculation mounted that the company was up for sale after it announced that the Wilson family was reviewing its 33% stake in the company.
The company said last Friday it had appointed NM Rothschild to undertake the review on behalf of David Wilson, founder and chairman of the company, and his family.
Analysts this week said that private equity companies would also be interested because returns from the business would be high. A price of £20 a share for the company has been mooted in the City.
It is thought unlikely but not impossible that the business would separate the housing and development businesses for a sale. The two businesses are closely integrated because of large-scale mixed-use schemes undertaken by the development arm.
In the announcement last Friday Wilson Bowden warned that a sale was not inevitable: “No conclusions have been reached in the review and retention of the holdings in full is one alternative.”