Private equity firms circle Taylor Wimpey

US private equity firms are considering a bid for house builder Taylor Wimpey, according to reports over the weekend.

The Observer claimed that Oaktree and Apax are thinking about either making a full bid or taking a minority stake as part of a restructuring deal that would see lenders swap debt for equity.

The plan would involve holding Taylor Wimpey shares for five years "as part of a recovery play on the bombed out housing sector" an unnamed source claimed in the paper.

The news follows an admission from the house builder last week that talks aimed at renegotiating its bank debt had been a "tad disappointing".

Most private equity companies were unavailable for comment apart from Permira which declined to comment. Taylor Wimpey also declined to comment.