Housebuilder's shares fell back this morning after City speculation drove them higher yesterday

Shares in Barratt have fallen back after spiking yesterday amid City speculation its management was considering an MBO at £6.00 a share.

Barratt's shares have plunged from £13.10 to almost a third of that price this year.

In October a number of directors bought shares in the firm at £6.80 and since then the company, in common with other housebuilders whose value has slumped, has dipped into the market and snapped up additional shares.

On Monday Barratt rose 4p to £4.69, one of the FTSE's few climbers on a day the index finished lower.

Barratt declined to comment on what it insisted was "market speculation" but the shares fell back the following day to 4.58.

One analyst said: "It's unlikely anyone, private equity house or bank, would want to fund an MBO in the sector right now. High interest rates, slowing house sales and tight credit all point against a deal."