Nov. 17 (Bloomberg) -- Taylor Wimpey Plc rose in London trading after the Observer reported U.S. private-equity firms Oaktree Capital Management LLP and Apax Partners Worldwide LLP were mulling a bid for the U.K.'s largest homebuilder.

Taylor Wimpey gained 6.5 percent to close at 9.89 pence. British venture-capital firms 3i Group Plc and Permira Advisers LLP are also considering offers, the newspaper said, citing an unidentified person in London's financial community.

Oaktree and Apax are considering a plan under which they would hold the London-based homebuilder's shares for five years, the Observer said. Oaktree may also take a minority stake as part of a restructuring deal in which lenders would swap debt for equity, the newspaper said.

Another scenario is that Taylor Wimpey's equity would be valued at zero and any acquiring private equity group would take on all the borrowings, the Observer said.

An external spokeswoman for Taylor Wimpey, Clare Strange at Finsbury Ltd., said the company declined to comment on market speculation.

To contact the reporter on this story: Scott Hamilton in London at shamilton8@bloomberg.net.

Last Updated: November 17, 2008 11:45 EST