31 August 2012 Last updated at 04:07 ET

Redrow chairman Steve Morgan in takeover approach

Redrow is considering the bid approach

Housebuilder Redrow has received a £560m takeover approach, involving the company's chairman and founder, Steve Morgan.

The approach is from three investment funds, Bridgemere Securities, which is controlled by Mr Morgan, Toscafund Asset Management and Penta Capital.

The three have made a preliminary offer of 152 pence a share.

Redrow said it had formed an independent committee of directors to look into the offer.

It urged shareholders to take no action while it was considering the bid.

The housebuilder's share price closed at 151p on Thursday, but the investment funds said their offer represented a 23.8% premium to the average share price over the past 90 days.

Mr Morgan - who owns Wolverhampton Wanderers football club - founded Redrow in 1974. He left the firm in 2000 but then returned in 2009.