Crest Nicholson confirmed on Friday it rejected a £650 million bid from Newcastle-based housebuilder rival Bellway plc last month. Its shares rose 14% on the London Stock Exchange.

The company said the bid “significantly undervalued Crest Nicholson and its future standalone prospects and was not in the best interests of Crest Nicholson’s shareholders.” It said its board unanimously rejected the proposal on 14 May.

Under City takeover rules, Bellway is required to announce whether it does or does not intend to make a further offer for Crest Nicholson by 11 July.