Canada’s largest homebuilder and a publicly traded US competitor are believed to be bidding according to Reuters.
They join a list of aspiring buyers which includes homebuilders and private equity firms.
Canada’s Mattamy Homes, which is privately held, and Meritage Homes Corp, the No. 9 US builder, placed bids by a Friday deadline, sources said.
Taylor Wimpey has valued the business at £600m which would virtually wipe-out the firm’s debts.
The company is selling Taylor Morrison, which is based in Scottsdale, Arizona, and Toronto-based Monarch Corp. Together they have about 25,000 lots, 76% of them in the United States.
JP Morgan Chase is running the auction which has already attracted bids from hedge fund billionaire John Paulson’s Rain Tree Investment Corp and Barry Sternlicht’s Starwood Capital Group.
Rain Tree is pursuing the deal less avidly now, however, said two sources briefed by the firm. It did not submit a fresh offer but might want to buy assets from the winner of the auction, one of those sources said.