Guardian- Cheap mortgages may be getting more and more difficult to come by but housebuilding shares shook off worries about falling demand for new homes yesterday. Instead, investors preferred to concentrate on the possibility of takeovers in the sector.
One catalyst for this was the news that the activist hedge fund Toscafund had raised its stake in Redrow from 9.68% to 16.56% and doubled its shareholding in Taylor Wimpey to more than 10%.
Redrow rose 25.5p to 314.5p and Taylor added 10.75p to 187p as traders decided Tosca – run by the former banking analyst Martin Hughes – may have spotted hidden value in the sector. Redrow has been tipped as a target for larger rivals such as Taylor or Bellway.
