Bovis Homes has rejected takeover offers from rival companies Galliford Try and Redrow.

In a statement, the house builder said it had received written proposals outlining potential merger proposals. Redrow proposed a share and cash transaction deal, while Galliford Try offered an all-share transaction.

However, the company said its Board reviewed the proposals and decided that "neither reflected the underlying value of the Bovis business and therefore both should be rejected".

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It is understood Galliford Try's offer was worth 886p per share, valuing the company at £1.19 billion. Redrow's offer is valued at 814p per share.

In a statement, Bovis Homes said: "The decision to reject the proposals was communicated to the two parties. Redrow subsequently indicated that it was not willing to improve the terms of its proposal and discussions were terminated. Discussions with Galliford Try are ongoing."

In accordance with the Takeover Code, both companies have until 5pm on 09 April to announce a firm intention to make an offer or walk away.

In its final results for the year ended 31 December 2016, Bovis Homes' pre-tax profits fell 3% from £160.1 million to £154.7m.

The company also set aside £7m to solve problems with houses that were sold to customers unfinished.

(LM/MH)