Peel Group, which is the investment vehicle of the Whittaker family, Saudi Arabia's Olayan Group and property investor Brookfield said on Thursday they were weighing a cash offer for the London-listed shopping centre company.

Peel and Olayan, the conglomerate founded by the Olayan family, together hold 29.9 percent of Intu, the consortium said.

Under British rules, the consortium now has until Nov. 1 to make a firm offer or walk away.

Rival shopping centre operator Hammerson shelved a 3.4 billion takeover of Intu in April due to heightened concerns among its investors about the British retail sector.

"A cash bid for Intu should warrant serious consideration by its shareholders ... Intu's prospects as a standalone entity are threatened by above average financial leverage which limits its ability to self-fund growth and maintenance capex," Liberum analysts said.

"A cash bid could offer shareholders a chance to salvage value ahead of a potential cash-call or dividend cut, under a new CEO."

Intu, which has a market value of 2 billion pounds, said it had not received an approach from a consortium. But it said it had set up an independent committee to consider any approach.

Intu shares traded 30 percent higher at 192.50 pence by 0835 GMT, close to the levels they stood at after Hammerson dropped its takeover plan in April.

Peel Hunt analysts ruled out a competitive bid, given the size of the consortium's shareholding.

"Taking Intu private makes sense, enabling the owners to deal with the inherent issues outside the public glare," Peel Hunt analysts said, adding that any offer would be at a material discount to net asset value.

"An offer at 190-200p per share may therefore provide the consortium with potential upside, but would it be attractive enough for the remaining Intu shareholders?"

Intu's other major shareholders include the Public Investment Corporation and Coronation Fund.

Intu's chief executive stepped down in July after the company swung to a loss and warned of lower rental income growth. Intu had also said it would be hurt by a number of administrations and restructurings initiated by tenants, including New Look, Toys R Us and Prezzo.

Graphic: UK shopping
centre owners hit by falling consumer confidence (

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Bernard Orr/Keith Weir)

By Noor Zainab Hussain and Maiya Keidan