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Barratt shares soar on good news
23 June, 2008Shares in Barratt have recently soared, thanks to an agreement with lenders.
Shares in Barratt have recently soared, thanks to an agreement with lenders.
Barratt, which could have been in breach of its lending covenants if a deal had not been made, has struck a deal with lenders Royal Bank of Scotland, UBS, Lloyds and HSBC.
Following reports regarding the deals share prices have been reported to have jumped 25 per cent to 98p.
It is argued that Barratt has come in to trouble at a fortunate time, as financial institutions are already too busy with bad debt to begin taking Barratt apart.
Sources close to the company told Building.co.uk that, "with massive mortgage books of their own [the banks] were never going to let Barratt go under. There was effectively no choice but to offer the waivers".
Barratt makes a turnover of £3 billion, and upon the news of a rise in share prices, gains were also made elsewhere, with Taylor Wimpey and Redrow rising eight and nine per cent respectively.
However, the company caused confusion over the weekend when it failed to confirm the good news to the press.
"If we had anything to announce, we'd announce it," a spokesman told the Financial Times.
The long, drawn-out sale of British Energy (BE) to EDF Energy has come to an end after the French energy firm bought BE for £12.5 billion, it has been reported.
Government hopes to have an EDF Energy-British Energy (BE) tie up within two weeks have been dubbed "optimistic" by the British nuclear company, according to a recent report.
Gordon Brown is facing the prospect of a major defeat over the government's reluctance to impose a windfall tax on energy companies, it has been reported.
The City of London has launched a campaign against Gordon Brown in order to convince him that introducing a windfall tax on energy companies should be avoided.
TaylorWimpey has reported phenomenally poor first half results for the year so far, recording a loss of £1.5 billion, it has been announced.