Grainger Trust, the quoted residential investor run by chief executive Rupert Dickinson, has rejected a bid approach from Southend-based Regis Group and Merrill Lynch

‘The approach from Regis and Merrill Lynch was unwelcome,’ said chairman Robert Dickinson in a statement to the Stock Exchange this afternoon. ‘Our own plans provide greater value and certainty than a speculative offer from a private equity consortium.’

Grainger’s shares, which jumped 11.5% last Thursday when news of the bid approach was revealed, fell back 2.4% to 609.75p this afternoon in response to the rejection.

Grainger, which owned around £1.8bn of residential assets last time they were revalued, said it would be issuing a year-end (to 30 September) trading statement later this week, which, said Dickinson, ‘will show the continuing strong performance of the company'.