Fidelity faces stand-off over Red Fidelity, one of Britain's most influential investors, is gearing up for a stand-off with Steve Morgan, founder and executive chairman of Redrow, by threatening to oppose his attempt to take the housebuilder private for about £660m. Mr Morgan, who founded Redrow in 1974 and floated it on the London Stock Exchange in 1994, approached the board last month suggesting he would pay 152p a share to buy out other shareholders, a price that would value the company at around £660m. He has until the end of the week to make a firm offer. Mr Morgan, who also owns Wolverhampton Wanderers football club, owns 40 per cent of the group, while Toscafund, the hedge fund which is backing his plans, owns a further 14 per cent. However, Fidelity Worldwide Investments, which together with its US counterpart, owns 10.5 per cent of Redrow - making it the company's third largest shareholder - said the price mooted by Mr Morgan is "opportunistic" and it would oppose the plans. Sanjeev Shah, manager of Fidelity's Special Situations fund, said: "152p is significantly adrift of the price Fidelity thinks Redrow is worth, which is at least 220p taking account of future earnings. The whole point of Redrow is that it is a recovery situation - recovery through management actions and the cycle. We won't reduce our stake for less than 220p. Redrow disputes this, arguing that 220p represents a 45 per cent premium to the net asset value, achieved only in the boom of 2007. Redrow is also hindered by the fact that it still has 2,500 plots bought at the peak of the market, which it will have to sell at a marked-down price. Like most housebuilders, the company has been persistently bearish about a speedy recovery in the housing market. Redrow was one of the housebuilders worst hit in 2008 by the downturn and management failures. A year later Mr Morgan and Fidelity began buying Redrow shares aggressively when Mr Morgan returned from a nine-year absence to oust the management team and take over running the company. Mr Shah said Mr Morgan has since improved capital discipline and rebuilt margins, reaching into more profitable housing markets in London and the southeast. Last week Mr Morgan unveiled a 70 per cent rise in profits on a 6 per cent rise in revenues. He also expressed frustration at the stock market's persistent valuation of Redrow below net asset value. Fidelity's holding alone is unlikely to block Mr Morgan's takeover unless it is structured as a scheme of arrangement which would need approval from three-quarters of minority shareholders. But if it is an open offer and less than 90 per cent of shareholders accept, Mr Morgan would not be able to force unwilling investors to sell their shares.