Apollo, the American private equity group, is understood to have approached Barratt Developments to offer to buy a stake in the troubled UK housebuilder. The Times

The US firm, which specialises in making investments in distressed companies and has a large European real estate fund, is believed to have offered to inject between £300m and £400m into Barratt at a small premium to the current share price.

Barratt, which is understood to have rejected the offer, had a market value of about £933.5m on Friday, when the shares closed down 0.5p at 269.25p. A year ago the shares were trading at £11.26, but the group, like many of its rivals, has been badly hit by the credit crunch and the rapid slowdown in the housing market.

In recent weeks several analysts have said they believe that Barratt will have to conduct an emergency rights issue to raise cash as the pressure of its debt burden – exacerbated by a flurry of acquisitions in the merger boom – takes its toll. It has about £1.7bn of debt, of which about £800m needs refinancing by next April.