Morning:
14°c
Shares in Britain's biggest landlords surged today on speculation that a consortium of high-profile investors, including the Indian steel tycoon Lakshmi Mittal, are looking to buy property giant British Land.
Shares in British Land itself shot up 31.9p to 525p, bringing gains in the past two days to more than 9%.
However, Land Securities also rose, climbing 19p to 646p, Hammerson added 10½p to reach 407¾p and Liberty International was up 12¾p to 492p.
British Land, which owns Broadgate Circle in the City, is said to be being targeted by investors from Abu Dhabi and India. The group is thought to include Mittal, Britain's richest man, and the Abu Dhabi royal family. The plans are said to be at an early stage, and British Land has not yet been approached.
Talk is that the group could yet cast its eye elsewhere or ditch plans to buy in the UK property sector altogether.
Analysts gave the speculation short shrift, however. “Moving from a part share in Broadgate to deciding to acquire the whole company is quite a sea change in investment criteria,” Credit Suisse said. British Land looks expensive on valuation terms, they added, which would deter potential suitors.
JP Morgan's Harm Meijer said: “Takeovers are not 100% ruled out, but this looks odd.”
British Land, which will post figures for the first quarter next Tuesday, also owns Regents Place in Marylebone and York House near Marble Arch.
