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Taylor Wimpey in talks with shareholders about cash injection - reports
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LONDON (Thomson Financial) - Housebuilder Taylor Wimpey is close to announcing a cash injection of up to 500 million pounds from top institutional shareholders to help it repair its balance sheet, according to reports.
The company is in talks about securing the funding from investors including Standard Life, Legal & General, Alliance Bernstein, Toscafund Asset Management, Barclays, Scottish Widows and M&G, the Sunday Telegraph and Sunday Times reported.
External investors including hedge fund Och Ziff are also involved in the discussions, the newspapers reported.
Investment bank UBS is advising on the deal, which could be in place by Wednesday, when Taylor Wimpey is expected to issue a downbeat trading statement, the reports said.
Taylor Wimpey is also close to securing a deal with its banks to relax lending covenants on bank debt of 1.9 billion pounds, the Sunday Times reported.
Housebuilders' shares have fallen in recent weeks as tighter mortgage credit contributes to lower demand and a slump in property prices.
Last month, broker Goldman Sachs downgraded Taylor Wimpey and rival Bellway Plc., saying macro indicators and negative industry news flow suggest the housing downturn is intensifying.
philip.waller@thomsonreuters.com
paw/hjp
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