Bovis Homes was at the centre of £3bn bidding battle tonight after spurning competing merger offers from rival housebuilders Galliford Try and Redrow.

Shares in Bovis are expected to surge on Monday after it emerged the troubled builder was being courted by two suitors. If either Galliford or Redrow are successful in clinching a deal, it would mark the first big deal in the housebuilding sector since the financial crisis.

FTSE 250-listed Bovis, which is currently without a chief executive and is led by chairman Ian Tyler, revealed it had rejected an all-share proposal from Galliford and a cash-and-stock offer from Redrow because both were too low.

Bovis said it was continuing to hold talks with Galliford about a possible tie-up but that negotiations with Redrow, the listed housebuilder that is 40pc controlled by founder and chairman Steve Morgan, had ended.

However, in a twist that sets up a potential fight for Bovis, Redrow revealed that despite being snubbed, it still hoped to strike a deal.

There has been speculation that Kent-based Bovis could attract a suitor ever since late last year, when it shocked investors with a profit warning that was followed by the abrupt departure of chief executive David Ritchie in January.