Wolseley, the building supplies group, has turned to traditional investors to underwrite a £1bn cash call, to be announced today, after the institutions that would normally guarantee the process tired of giving troubled companies fresh capital.

The capital raising will consist of a £750m rights issue that will go out to Wolseley’s existing shareholders as well as a placing of new stock valued at £270m-£300m. Those who take up the new stock will also have access to the rights issue.

Financial Times,The Times