The decision to call off talks came as Bovis Homes announced that former Galliford Try chairman Greg Fitzgerald was taking over as its new chief executive after Easter.
Bovis said it had decided to reject merger proposals as it believed that an independent strategy under the leadership of Fitzgerald would deliver greater value for shareholders.
Fitzgerald, who spent 35 years at Galliford Try, said: “Bovis has a great brand, excellent people and a high quality land bank.
“I very much look forward to working with the management team to restore Bovis’ position as a leading house builder and deliver significantly improved returns to shareholders.”
In a statement this morning Galliford Try said: “Since the approach, the leadership teams of Galliford Try and Bovis have held discussions over a number of weeks that have been largely constructive.
“It has, however, become clear to the board of Galliford Try that it is not possible to secure the support of the board of Bovis on terms that represent the best interests of Galliford Try shareholders.”
Bovis revealed that Fitzgerald would be starting on a £650,000 salary, with an annual bonus package of up to double this figure based on leadership of the review of strategy and structure.
His package also includes a long term incentive plan of up to 200% of salary for each of the first two years.
Ian Tyler, non-executive chairman, said: “We are delighted that Greg has agreed to be our new chief executive. He brings a wealth of housebuilding experience and I am confident he will rapidly drive performance across the Bovis business.”
Bovis Homes said it was focused on re-setting the business and driving operational improvements through cost efficiencies, more effective build processes and improvements in quality.
It said: “We have significantly enhanced our customer service function across all regions and more than half of all Bovis employees have participated in a bespoke Customer Training Programme, with all employees targeted by the end of April.
“In addition we are making good progress with resolving the high level of customer service issues we faced at the start of 2017.”
It a statement this morning the board added: “We are progressing our programme of balance sheet optimisation over the next two years from the sale of our shared equity assets, a reduction in part exchange assets, the continuation of land sales where appropriate and a strategic partnership at our site in Wellingborough.”
