Countrywide agrees 3i bid

Countrywide, Britain's largest estate agent chain, has agreed to be bought by private equity firm 3i in a £940 million deal. The cash and share management buy-out was agreed to yesterday after Countrywide gave up hope that a rival bidder would emerge. Shareholders will be offered 490p cash along with shares in Rightmove, an online real estate service part-owned by Countrywide, according to the scheme unveiled yesterday.

Under the agreement, Harry Hill, Countrywide's managing director, and the executives Mike Nower and Grenville Turner will be installed as management of Charlie Holdco 4, the company set up to carry out the purchase, which will be indirectly owned by 3i.

Countrywide shares closed at 523p, down 1.75p, before last night's announcement. Rightmove shares lost 6 per cent to close down 22p at 345p.