Connells ups Countrywide bid to £112m

The offer values each Countrywide share at 325p - 30% more than an earlier offer of 250p a share that Countrywide's board rejected.

Privately owned Connells said it increased its bid after talks with Countrywide's major shareholders. The offer is 124% more than Countrywide's value before bid activity affected its share price and values the company at £200m including debt.

Countrywide shares rose 18.8% to 303.01p at 08:14 GMT.

Connells is in a battle with private equity firm Alchemy Partners to take control of Countrywide. On Friday Alchemy said it had the support of almost 45% of Countrywide shareholders for a proposed 250p a share offer that would allow existing shareholders to keep their stakes in the company.

Alchemy claimed its proposal was superior to Connells' standard takeover bid because Countrywide's shareholders were divided between those who wanted to sell and others who thought there was more value in the business. Connells said on Monday its increased offer was a good deal for shareholders and "a clean, simple and straightforward transaction".

Countrywide said: "The board will evaluate the merits of the Connells firm offer in consultation with the company's major shareholders, together with all other available options for the company, including (but not limited to) the revised proposal from Alchemy."

Alchemy said it was considering its options in relation to its proposal following Connells increased offer.