Sunday, June 15, 2008
Help! We’re going under! Splash!
A group of Britain's biggest institutional investors are working on secret plans to provide direct funding to shore up the beleaguered housebuilding sector. Housebuilders have been squeezed by the slowdown in the housing market, while still having to pay for building works Bankers at UBS have drawn up possible plans for a wide-ranging placing by major shareholders in companies including Taylor Wimpey and Barratt Developments. The radical move comes after a plea from investors to the housebuilders, through their financial advisers, to abandon any plans to launch rights issues. One top investor said: "The message was, 'Please don't do a rights issue, just come to us and we'll put some money into a kitty and recapitalise the businesses directly'."