Barclays Capital and buyout firm Permira have fired the latest salvo in the two-horse race for McCarthy & Stone, increasing their bid to match a rival offer. The competing consortium led by the billionaire Reuben brothers responded by buying a 4.7% in the retirement homes builder.

Mars Bidco, the BarCap/Permira bid vehicle, has already had a £10 per share offer recommended by McCarthy's board. It has now upped its bid to £10.30 per share, to match a competing bid from Broomco, a consortium comprising the Reuben brothers, HBOS and Scottish entrepreneur Sir Tom Hunter.