Heywood rejects £247m approach

Heywood Williams yesterday confirmed it had rejected an unsolicited approach that would have valued the PVC doors and windows maker at £247m.

It is understood that the informal 300p-a-share approach was made, in a letter, by a private equity firm backed by an investment bank. Shares in the company jumped from 211p to close at 261.5p.

Hamish Bryce, the Heywood Williams chairman, said: "We were never talking to them, the level of this approach did not merit discussion. It was unsolicited, exploratory and tentative. It significantly undervalued the company."

However, Heywood Williams added that "the board continues to review all options". The company is meeting shareholders this week, andits advisers, Deutsche Bank and Cazenove, are now expected to try to flush out other bidders.

Heywood Williams parted company with its chief executive, Michael Broadhead, in March and it said at the time that it was looking for a more dynamic future strategy. Stephen Rawlinson, an analyst at Peel Hunt, said the company would be looking for a price of around 375p a share but that 350p would be a more realistic valuation.