Taylor Wimpey is in talks with investors about a rights issue following the successful refinancing of its £1.57bn of debt.

Shares in the company surged more than 9%, or 4.25, to 49.5p yesterday as traders were boosted by rumours about the beginning of cash call talks and Government plans to spend £1bn on supporting stalling development sites through the Operational Efficiency Programme.

A source close to the company insisted that talks with shareholders, who include Barclays, JP Morgan and Standard Life, were at an early stage.

Daily Telegraph