Wolseley shares up on bid rumour

Wolseley has suffered in the wake of a US housing slowdown

Shares in building and plumbing firm Wolseley have risen 7% after a report that private equity firm Cinven is considering a £10bn bid.

Cinven has spent three months mulling the move, which would entail seeking a partner and splitting up Wolseley, City AM newspaper said.

While Cinven would control UK and European operations, its partner would control US operations, the report said.

On Tuesday, reports said Wolseley was looking at bidding £5bn for Home Depot.

WOLSELEY'S BUSINESS Employs 80,000 people Has 5,000 worldwide branches Supplies building and plumbing equipment See share price

Wolseley, the world's biggest supplier of plumbing and heating equipment, has suffered weaker performance in the US following a slowdown in the housing market.

The setback prompted the firm to announce plans in January for about 2,000 US job cuts.

Around 65% of the firm's turnover comes from North America.

Wolseley shares closed up 7.2% at 1407 pence.