Newcastle-based Bellway, currently the third largest housebuilder in the UK, issued a statement to the Stock Exchange confirming that it had made an offer to buy Crest Nicholson, which stands just outside the country's top 10 builders. Bellway said the all-share offer, which would give Crest Nicholson shareholders 17.1% of the enlarged group, had a "compelling strategic and financial rationale" and that it would deliver "significant operational synergies and support sustainable shareholder returns through the cycle". Surrey-based Crest Nicholson, which earlier this week reported a 71% drop in half-year profits, has rejected the offer, saying that it "significantly undervalued Crest Nicholson and its future standalone prospects and was not in the best interests of Crest Nicholson's shareholders".