HOUSEBUILDER Taylor Wimpey and private equity firm 3i have asked investors for £1.2bn in a bid to bolster their strained balance sheets.

May 9 2009 Huddersfield Daily Examiner

The two businesses said the cash injection would be used to reduce debt and put them in a better position to seize on future investment opportunities, particularly at a time of depressed valuations.

Taylor Wimpey hopes to raise £510m through a placing and open offer of shares, while 3i wants £700m in a heavily discounted rights issue.

The cash calls are the latest in the UK as firms – including William Hill and HSBC – look to rebuild balance sheets and cut debt.

Taylor Wimpey chief executive Pete Redfern said the fundraising would place the company at the “forefront of any housing market recovery”.