Well, my hunch was right. As I suggested earlier this week Land Securities rejoined the £10bn club this morning, and there could be further to go.
A bullish interim management statement tipped the stock into the elite £10bn club, and with a confident outlook on lettings we should not be surprised if the confidence in Land Securities continues.
Another company still rising is Savills. Now, yesterday I suggested there is the odd rumour of a takover bid. Then yesterday afternoon I heard one firm in particular was running the slide rule over an approach. No fewer than three senior property people suggested the same company could be set to bid for Savills, but the firm in question said it had held no talks with its rival. Note the language there. It has not held talks, but it did not comment on whether it was considering a bid.
I won’t name the rumoured bidder here, as that could get people a little over excited. These kind of rumours often make sense, and then come to nothing.
But let’s look at a key fact. While CBRE and JLL both trade at multiples of 17x, Savills trades at around 11x. Therefore, say some, its got to be on someone’s bid list as there’s value in Savills’ yet. It certainly looks like a good fit internationally with the firm I’m hearing about.
Watch this space. There’s a chance something could come of this.
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