Market wrap: Countrywide crashes as deal hopes disappear
Estate agency Countrywide has seen its share price more than halve after rival LSL Property Services called time on takeover talks.
The pair had been in discussions over a possible merger since late February and had until later this month to confirm whether the deal would happen. But when the market opened today, LSL said it has no intention of making an offer for Countrywide.
Countrywide responded by issuing a statement in which it said its board has faith in its future as a standalone business. Its shares closed almost 51% lower at 81p. The company now has a market capitalisation of £25m. On the day the merger talks were announced, its shares stood at 339.6p, valuing the company at £111m.
Estate agency Countrywide has seen its share price more than halve after rival LSL Property Services called time on takeover talks.
The pair had been in discussions over a possible merger since late February and had until later this month to confirm whether the deal would happen. But when the market opened today, LSL said it has no intention of making an offer for Countrywide.
Countrywide responded by issuing a statement in which it said its board has faith in its future as a standalone business. Its shares closed almost 51% lower at 81p. The company now has a market capitalisation of £25m. On the day the merger talks were announced, its shares stood at 339.6p, valuing the company at £111m.
News of the LSL talks ending comes just days after Countrywide said its planned sale of Lambert Smith Hampton is no clearer to closing and that it may take legal action against the agreed buyer.
LSL closed down nearly 30% at 174.5p.
Serviced operator IWG was also nursing a notable fall in share price, dropping by more than a third to close at 146.25p.
Stock indices around the world continue to see dramatic swings as worries mount over the economic hit from the spreading coronavirus, despite central banks’ efforts to calm markets.
The FTSE 100 dropped by 215 points, or 4%, to 5,151. There was an even sharper fall of 7.8%, or 1,212 points, for the FTSE 250, which closed at 14,349.
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