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Taylor Wimpey: needs work, going cheap.

Investors Chronicle - magazine and web content, June, 2007

The Taylor Woodrow and Wimpey merger has much to prove, but expectations are low Kirsty Green

Taylor Woodrow and Wimpey are hardly the dream team. Both companies are afflicted with below- par profitability and they're both exposed to the stumbling US housing market. So when they announced a merger, it had the feel of losers commiserating rather than champions celebrating. That impression has been reinforced by the fact that, while the merger structure meant that there was no takeover premium, no-one else seems willing to pay one, either, as initial hopes of a rival bidder emerging have come to nothing. Nevertheless, Taylor Wimpey may yet have the last laugh.

By combining forces, Taylor Wimpey will leapfrog Barratt to become the UK's largest...

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