Countrywide backs US takeover bid

Countrywide's many estate agent brands include Bairstow Eves

The UK's largest estate agent chain, Countrywide, looks set to head into US hands after it accepted a £1.05bn ($2.1bn) cash and share takeover offer.

The improved 617p a share offer from US private equity group Apollo may still be trumped by a rival suitor.

Apollo raised its offer by £400m in order to fend off a rival bid, thought to be from private equity group 3i.

In January, a proposed £971m management buyout of Countrywide - backed by 3i - failed to win investor backing.

Significant presence

As well as operating 1,200 estate agent offices, alongside legal and financial services, Countrywide also holds a 21.5% stake in online estate agent Rightmove.

Under the Apollo deal, Countrywide investors would receive 530p a share in cash and 0.16487 Rightmove shares for every Countrywide share.

Countrywide chairman Christopher Sporborg told shareholders that the Apollo offer represented good value and was "the right thing to do".

However, a rival suitor could still come back with a counter-bid as the Apollo offer has yet to receive approval in the High Court.

A hearing on the offer is not due to take place until 1 May.