The Berkeley Group Holdings plc (LSE:BKG) has rejected a proposed merger with competitor Bovis Homes Group PLC (LSE:BVS), sources told The Telegraph, following a report from the Sunday Times suggesting a potential combination between the two FTSE 250-listed house builders. The Sunday Times reported that Schroder Investment Management Limited, Bovis's second biggest shareholder - with a 6.4% stake - is pushing for a £5 billion merger with Berkeley. Earlier this month, Bovis's chief executive resigned following a profit warning.