Taylor Wimpey's ￡216m pension fund deficit has not put off potential investors, according to sources close to the housebuilder, writes Tom Bill. One source said the issue was not a dealbreaker for private equity-groups, despite City rumours that it had deterred some from making a bid. They said: "The pension fund is one part of the bigger picture. All that matters for private equity is whether the value is right. Yes it's an issue but it's by no means an insurmountable hurdle." The ￡5.9bn-turnover company's accounts indicate that an outright takeover, which is understood not to be on the table, would require a buyer to invest up to ￡1.2bn in the fund over its lifetime. Taylor Wimpey is understood to be in talks with four private equity funds about selling an estimated 30 stake. According to a source close to talks between the housebuilder and its banks, it needs to raise fresh cash before February to secure a relaxation of its lending covenants. Two weeks ago, it put its Taylor Woodrow construction arm on the market.
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