SHARES in property group Peel Holdings - headed by Rossendale-based John Whittaker - rocketed after the board confirmed plans to take the company private.

Peel's shares rose 21 per cent to 602p, boosting the company's market value to £465 million.

The share rise followed a report in the Financial Times which said the directors' plans to buy the company's shares back would value the group at £700 million.

The board of Peel Holdings, which is involved in a number of major East Lancashire developments, confirmed plans were underway to buy back all the company's ordinary and preference shares.

In a statement to the stock market Peel's board said: "It is emphasised that this process is at an early stage and that the level of any offers that may be made has not yet been determined." Peel's main operation is the development of the one million square foot Trafford Centre in Manchester, which has been billed as the UK's first "mega-mall".

The £600 million centre opened last autumn is the site for Selfridges first store opening outside London.

Uncertainty over the severity of the economic slowdown and the effect on retailing and retail property hit Peel shares late last year.

Peel also runs Liverpool airport and in September was named as the preferred bidder to develop the disused RAF airfield at Finningley near Doncaster, South Yorkshire.

In its last interim results for the six months to September 30 pre-tax profits were £6.25 million, up from £5.82 million.

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