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Britain's Galliford rejects Bovis Homes bid for home building arm

(Changes sourcing to Galliford and add details)

May 25 (Reuters) - Britain's Galliford Try plc said on Saturday it had rejected a bid from home builder Bovis Homes Group as the offer was not in the interests of all shareholders.

Galliford Try said in a statement that Bovis intented to buy Galliford Try's Linden Homes and Partnerships & Regeneration arm in exchange for new Bovis Homes shares.

Sky news, which reported the deal-talks first, cited a Bovis insider saying it was unlikely Bovis would be interested in Galliford Try's troubled construction division, which was responsible for a recent profit warning.

If the companies pursue a full merger, the combined entity could be valued at about 2 billion pounds ($2.5 billion) and a significant chunk of any offer from Bovis for part or all of Galliford Try is likely to be in shares, Sky News said.

Bovis Homes Group declined to comment.

($1 = 0.7867 pounds) (Reporting by Rishika Chatterjee and Maria Ponnezhath in Bengaluru; Editing by Alexander Smith)