Taylor Woodrow Share Discussion Threads

[markpun] 05/5/2007 10:04

Interesting, no bid approach for Redrow by Persimmon, maybe target Taylor Woodrow????????
Redrow denies talk

The market value of Redrow, the housebuilder, rose 5.5 per cent yesterday to £1.03 billion, amid intense takeover speculation. It is thought that Persimmon, the FTSE 100 firm, may switch its attention to Redrow from a possible break-up of the proposed £5.5 billion Taylor Woodrow-George Wimpey merger. Neil Fitzsimmons, Redrow chief executive, said he "would not comment on market gossip". Sources at both companies denied there had been any approach. (James Rossiter)

[markpun] 05/5/2007 10:02

"Among mid-caps, Redrow, the housebuilder, jumped 32½p to 643p on renewed talk that it could be a target for Persimmon, up 30p to £14.05."

[markpun] 05/5/2007 10:01

Morning Folks,

I geusse this is the answer to my above question..

"The rumour emerged after Taylor Woodrow, up 9½p at 505¾p, and George Wimpey, up 12½p at 605p, sent around a document on their prospective merger saying that cost savings would exceed the initial target, opening up the possibility that the enlarged group will return cash to shareholders. Persimmon, which had been widely rumoured to be investigating a bid for Woodrow, may now prefer to look at Redrow given its lower earnings multiple and lack of exposure to the struggling US and Spanish markets, the rumour's logic went."

[markpun] 04/5/2007 15:29

Anyone, why the surge and frenzy this afternoon?

[markpun] 04/5/2007 07:14

Morning Folks,

Could this be true...

The rest of the housing sector was sluggish in comparison and market-makers said that although UBS upped its target to 2,082p from 1,800p, there was also talk that Persimmon is running the rule over Berkeley. Persimmon, 15p worse at 1,371p, looks to have little chance of preventing Taylor Woodrow and George Wimpey from merging and so could be casting its eye elsewhere.

[markpun] 03/5/2007 17:07

Have a great holiday.

[judge jury] 03/5/2007 16:46

Bodes well for new merger terms tomorrow. Only sorry I wont be around (on hols for a while now). Good luck to all.

[markpun] 03/5/2007 16:45

Great finish to the day.

[markpun] 03/5/2007 07:56

"and hinted that shareholders may get cash back from a "more efficient joint balance sheet".

[markpun] 03/5/2007 07:02

Morning Folks,

Taylor takes US hit

Taylor Woodrow has taken a £25 million writedown on its American land holdings, as forewarned last week in The Times, after the normal February condominiums sales failed to take off. Ian Smith, the chief executive, said that he would be posting on Friday the merger document on the proposed £5.5 billion tie-up with George Wimpey and hinted that shareholders may get cash back from a "more efficient joint balance sheet". (James Rossiter)

[8gamsby] 02/5/2007 20:35

Who else might be deciding wether or not to bid.

[judge jury] 02/5/2007 17:41

STOCKWATCH Taylor Woodrow higher after AGM; Bridgewell repeats 'neutral'
2 May 2007

LONDON (Thomson Financial) - Shares in Taylor Woodrow PLC were slightly higher in early morning deals, following its AGM statement this morning, with Bridgewell Securities reiterating its 'neutral' stance, dealers said.

At 8.36 am shares in Taylor Woodrow were 1 pence higher at 487-1/2.

Taylor Woodrow said in its AGM statement that UK market conditions remain robust, but in the US prices are weak and conditions continue to vary considerably across its key markets.

The company, which is currently trying to push through a merger with fellow housebuilder George Wimpey PLC, underlined the difficulties in the US housing market as it announced a 24 mln stg writedown to its landbank in California and Florida.

In reaction, Bridgewell said the AGM statement confirmed that results before exceptional items are expected to be in line with expectations.

The broker said that whilst the statement is broadly in line, in the absence of a rival bid the stock is looking expensive relative to its returns.

It added that it continues to believe that Barratt Developments PLC and Bellway PLC offer superior value without the uncertainty of the US housing exposure.

[markpun] 02/5/2007 16:50

At least we ended up.

[markpun] 02/5/2007 13:59

This is interesting..

WEDNESDAY, MAY 2, 2007 7:30 a.m. EDT


UPDATE: Mortgage Applications Crawl Higher

DOW JONES NEWSWIRES


By Rex Nutting


WASHINGTON (Dow Jones) -- Applications for new mortgages increased 0.6% last week on higher demand for loans to buy a home, the Mortgage Bankers Association reported Wednesday.

The total number of applications filed including purchase loans and refinancing loans was up about 9% compared with the same week a year ago.

The MBA's data do not indicate how many applications were accepted. Lenders have reported tightening their standards for loans, especially for subprime and exotic alt-A loans.

The number of applications filed to refinance an existing mortgage decreased 3.2% last week.

The volume of loan applications to buy a home increased 4% compared with the previous week.

The average rate for a 30-year fixed-rate loan rose last week to 6.14% from 6.1%3.

The rate for a 15-year fixed loan, a popular refinancing option, rose to an average of 5.83% from 5.82%.

Average rates for one-year adjustable-rate mortgages were unchanged at 5.79%. ARMs accounted for 17.9% of total applications, a four-year low.

[markpun] 02/5/2007 13:36

"Analysts have been speculating that bidders interested in Taylor Woodrow such as Persimmon PLC have been waiting for a further update on the US housing market before pricing any bid for the company."

[markpun] 02/5/2007 13:35

Taylor Woodrow makes 24 mln stg writedown, 16.6 mln stg legal provision UPDATE
AFX


(adds pricing and Arizona details)

LONDON (Thomson Financial) - Taylor Woodrow PLC's 24-mln-stg writedown to its landbank in California and Florida gives further proof of the difficulties in the US housing market.

The company, which is currently trying to push through a merger with fellow housebuilder George Wimpey PLC, said in its AGM statement released today that the spring selling season for its high-rise tower division in Florida had been very poor, resulting in a one-off non-cash provision to its land holdings of 15.5 mln stg.

It also announced a further 9.5 mln stg provision to reflect weakness in certain local markets in Southern California and Florida.

Today's 24 mln stg hit follows a 40 mln usd writedown by Taylor Woodrow on its US landbank in December, which itself came after a 60 mln stg writedown by its new partners Wimpey. Analysts have been speculating that bidders interested in Taylor Woodrow such as Persimmon PLC have been waiting for a further update on the US housing market before pricing any bid for the company.

Additionally, the company has provided 16.6 mln stg this year against potential liability in ongoing damages proceedings in Florida against several US-based Taylor Woodrow subsidiaries.

The company said in its AGM statement today that UK market conditions remained robust, but in the US prices are weak and conditions continue to vary considerably across its key markets.

'Conditions remain good in our markets in Texas and Canada and the Arizona market is stabilising,' the company said. 'However, market weakness persists in California and particularly Florida and conditions have worsened in certain submarkets within those states.'

In Florida, the company said although the locations of its sites were 'excellent,' the high-rise market had weakened 'significantly' and it wanted to save costs by suspending sales efforts for the business until market conditions improved.

However, Arizona cancellation rates have come down from 55-60 pct in H2 last year to around 20-25 pct. The company said that 'the overhang of stock is not all gone but is significantly reduced'.

But there has been an impact on pricing. 'In the particular areas we're looking at where we've been taking provisions we're looking at price declines of around 100,000 to 150,000 stg,' Taylor Woodrow chief executive Ian Smith told analysts in a conference call. 'I should say these are not starter homes, but reasonably high-priced homes -- 700,000 to 800,000 usd homes.'

The housebuilder said that it remained cautious in the land market across North America and has reduced its level of spend compared to last year. However, it expects the market to pick up in the medium term, and is eying acquisitions in the US to exploit this at the right time.

It added that its Spain and Construction divisions continue to trade in line with expectations.







[e-mail]

[judge jury] 02/5/2007 10:34

There is a slight chance that there will be some good news at the interims (probably in Aug/Sep). They might say that the UK businesses performing really well and the US problems are behind them. However, I cant see the market rerating them on this basis alone unfortunately.

[judge jury] 02/5/2007 10:27

ex-city ... although I did spend a bit of time with the housebuilders when I was there.

If the merger goes ahead, it will complete in July and you wont really hear much from them until the pre-close statement in December/January and then the results in Feb/Mar 2008. Cant see a rerating before that I am afraid - there are lots of risks around to worry people (e.g. merger integration, US market problems, UK topping out etc.)

I still think the merger creates a fantastic group for the long term. The US will rebound and Taylor Wimpey will be in an excellent position to exploit the turn around and the combined UK group will be so much better than the two on their own. Will just take time unfortunately.

[markpun] 02/5/2007 10:13

Judge,

Cheers, if the merger goes ahead, how long do feel it would be before rerating? I am in this on spread bet and heavily down. Are you a City lad or a commoner like myself?

[judge jury] 02/5/2007 09:58

No idea really. It all depends on whether you think the merger will go ahead or whether PSN will gatecrash. WMPY is still 10% below the implied merger price. If PSN suddenly announced they werent going to do anything, I would expect TWOD to fall and WMPY to rise such that this "premium" is more or less eliminated. However, the premium could be eliminated by TWOD falling 10% and WMPY staying the same. Or alternatively, WMPY could fall 5% and TWOD by 15%.

I have said before that (based on some simple sums), if the merger goes ahead, it could produce PBT of some £925m and assuming the combined group gets rerated to about 9.5x PE, then it could trade on about 540p. However, the market wont rerate it in a hurry and the combined group would need to demonstrate that the synergies are being achieved.

Obviously, if PSN announce a bid, TWOD would rise substantially. But the bid would need to be 550-600p really.

So, it could go up, down or stay the same. Sorry this is not very helpful.

[markpun] 02/5/2007 09:47

Judge,

How low do you see this going?

[judge jury] 02/5/2007 08:44

The UK looks pretty good. I think it is interesting that the statement is light in this area and heavy on the US problems. Probably trying to warn the PSN Board away.