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Barratt Developments set to launch 500m rights issue

Housebuilder Barratt Development is expected to launch its &pound;500m rights issue at the end of this month.<br /><br />Insurer RSA, rival housebuilder Redrow and several others are thought to be readying themselves to bid for the stake.<br /><br />The cash call is believed to be part of the group&rsquo;s efforts to make further inroads into its &pound;1.3bn debt burden and strengthen its position in the land buying market.<br /><br />Barratt said in July it had cut its debt by &pound;370m in the year to end of June. It has been gauging support from shareholders for the rights issue since the beginning of last month and is thought&nbsp; to have received positive noises from major shareholders including Pheonix Asset Management, Legal and General and Polaris.<br /><br />Barratt&rsquo;s rights issue would be the second-largest in the sector in recent months after Taylor Wimpey&rsquo;s &pound;510m fundraising in early June<br /><br />Its is believed British companies will tap shareholders for an estimated &pound;5bn over the next two months.