Avant Homes has had an acquisition bid rejected by rival housebuilder, Crest Nicholson.

Sky News has reported that the London-listed firm rejected the bid made last month by Avant Homes, which is run by the former chief executive at Persimmon, Jeff Fairburn.

If the deal was accepted, it would have seen Elliot, the firm which owns Avant Homes, become the biggest shareholder in the combined group, insiders have stated.

However, one source said that the combination represented an "unattractive prospect" for some Crest Nicholson shareholders.

The news comes after the firm rejected an earlier takeover bid from other rival, Bellway, which made an offer of approximately £650m.

Despite Bellway valuing the shares at 258 pence each, which represents a premium of 18.8% to Crest Nicholson’s share price, the firm said that the proposal "significantly undervalued" the housebuilder and its "future standalone prospects", while not being in the interests of shareholders.

Bellway now has until next Thursday to make an offer for the firm under takeover rules.

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