British property group Liberty International confirmed yesterday that it had launched a bid to buy back a 29.9 per cent stake in itself to thwart a potential bid from rival property group British Land Plc.

Liberty said it had written to two South African shareholders on Friday offering to buy the 29.9 per cent stake for 575p sterling a share in cash or £538 million sterling (£672 million), to frustrate any attempt by British Land, headed by Mr John Ritblak, to bid for the company or build up a stake.

A Liberty spokesman said the group already had banking facilities in place to borrow the cash it needs for the offer.

If successful, the action would lift Liberty's net asset value by almost 40p to 740p. The shares currently trade at a big discount to its net assets.