July 7 (Bloomberg) – Taylor Wimpey Plc, the U.K. homebuilder that’s booking $1.3 billion in writedowns, will need to book additional costs as a ``prolonged process’’ of revaluing land sweeps through the industry, according to Merrill Lynch analyst Mark Hake.
Taylor Wimpey and Barratt Developments Plc, dubbed the distressed duo'' by Hake, are in talks with banks to ease borrowing terms and an agreement will eventually’’ be struck, he said in a note today. The move will ``massively’’ dilute net asset values on a per share basis, Hake wrote.
The two homebuilders have both slumped more than 90 percent in London trading in a year that Britain entered its most widespread housing decline for 30 years. Banks have reined in mortgage offers, starving potential homebuyers of funds and leading house prices to tumble the most since the end of the country’s last recession in 1992. >>>>
**U.K. Homebuilders Face More Writedowns, Merrill Says (Update1) **
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