Sunday, Jun 29, 2008
Another f'd company
Press Association: Taylor Wimpey to unveil emergency cash call
Beleaguered housebuilder Taylor Wimpey is reportedly finalising an emergency multi-million pound fundraising plan as it suffers in the face of a property market slowdown.
The firm is said to be hoping to unveil a deal this week, possibly ahead of its trading update on Wednesday, that will see its biggest investors pledge up to £500 million to boost its battered balance sheet.
Taylor Wimpey is also understood to be in talks with its banks to relax agreements on debt that it is thought to be close to breaching.
Posted by little professor @ 06:36 PM (976 views) Add Comment
11 Comments
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1. paul said...
There really is no excuse for these companies. If i was a shareholder I'd have none of it. The problem has been that during the good times, when the management didn't have to do an awful lot to earn their bonuses, they pocketed the money instead of putting it aside.
As guilty as any of the "house prices only ever go up" mentality.
2. enuii said...
These cash calls are getting rather common, I can't help wondering how long it will be before investors decide to cut their losses rather than pour further funds into a companies that may struggle for more than a couple of years.
3. Britishblue said...
Expect to see Persimmon to follow suit very soon.
Persimmon are more exposed to housebuilding than Taylor Wimpey. It won't be very long before some big ones go bust. Unlike the banks the country doesn't lose credibility if housebuilders go bust. Several hundred already have in the States.
4. tyrellcorporation said...
I just got an offer to help prop up Barclays (as I already own some shares). They've offered them at a paltry discount over the market rate so am going to snub it. I know my shares are going to be diluted somewhat but chucking more tenners on the fire doesn't seem quite right to me.
5. paul said...
I've got a feeling you won't be alone, tyrell.
6. who stole my pension? said...
"Major shareholders including Standard Life, Barclays, Legal & General and Alliance" bang goes my Standard Life pension!!!! Just what has the SL fund manager been doing? I think the unions this week got it right when they said the pension fund managers were hiding the way they voted so that people did not realise that the fund managers were approving directors pay increases in the hope that they would return the favour. It's not only directors of builders and bank managers who have been sleeping it is also our pension fund managers and this will be more painful that a HPC!!
7. deepak said...
Looking forward. Housing market in the UK has not faltered yet. Price have just started to ease off.
And the biggest building company has already seeing so much trouble.
If this continues for another 2-3 years which it is likely to before it sees the bottom and then another 2-3 years before any recovery.
What will be the position of these companies then?? Taylor wimpey, Barrat, Persimmon ??
8. deepak said...
All that has happened so far. The mentallity that house prices only go up has come into question.
The major repossession is yet to happen. Because of increased rates and falling economy thats still in the future.
9. tick tock said...
PAUL...here here!
WSMP...quite right!
10. icarus said...
Stick or twist. I'll stick.
11. wiltshire said...
Deepak @ 7, during the last crash the market took 6 years to bottom out and another 6 before prices reached the same level they had been before the crash. I think the trough could be much deeper and much longer lasting this time round. This country will be utterly sick and tired of the housing market by the time this bust has played out.