Minerva buoyed by bid interest

Minerva – the property company currently involved in the building of the tallest structure in the City of London – saw its share price rocket 28% today after confirming it had received a takeover approach.

The London-based group said discussions with the unnamed third party were at a preliminary stage, and it had also received interest from other parties.

Minerva, which also ruled out a buyout by its executive directors, said it was now considering its options.

It was reported yesterday that the approaches, which are understood to be from rival property companies, could lead to an auction for the group.

According to the Sunday Times this could trigger interest from larger rivals such as Hammerson, British Land and Land Securities.

Minerva’s portfolio includes about £800m (€1.2bn) of investment property in the capital, and it also has planning permission for a massive new retail centre in Croydon.

The group, which also owns department store chain Allders, is currently developing the tallest building in the Square Mile.

The Minerva Tower, which is in St Botolph Street, would be 712ft tall and provide one million square foot of office space, as well as shops, over 50 floors.

In the year to June 30, Minerva reported pre-tax profits before exceptional items of £1.4m at its core business, from £6.3m (€9.5m) the previous year.

This was achieved against a “challenging” global and domestic backdrop, which Minerva said had an adverse effect on the real estate market in London.

Shares rose 70.25p to 316p today.