McCarthy & Stone, the UK housebuilder, has rebuffed an offer from a private equity consortium led by the billionaire Reuben brothers and HBOS because of break fee arrangements the company made with another bidder, despite the new offer coming in at 30p per share more than its rival.

Broomco, the consortium consisting of the Reuben brothers, Bank of Scotland and Scottish entreprenuer Sir Tom Hunter, yesterday formally submitted a 1030p per share all-cash offer for McCarthy & Stone. The offer was 30p a share higher than an offer from Mars Bidco, a rival consortium including Permira and Barclays Capital.