<p>Britain’s largest provider of private retirement homes, McCarthy &amp; Stone, is the subject of a bidding war between Augusta Capital, an investment firm, and Permira, a private equity group.</p> <p>Reports suggest that Augusta, which is backed by the Reuben brothers and former investment banker Jacob Lyons, will make a £1 billion offer. It is believed that Augusta is working in partnership with HBOS bank on the deal and being advised by NM Rothschild Permira is working with Barclays Bank, which has released a statement that it was “in discussions with McCarthy &amp; Stone in relation to a possible offer for the company.”</p> <p>McCarthy &amp; Stone had earlier announced that it had “received approaches which may or may not result in an offer for the company.”Its share price leapt by 15% on the news.</p> <p>If a £1 billion deal is brokered it will be the largest takeover in British housebuilding history, outstripping Persimmon’s £634 million acquisition of Westbury. It is thought the price is prohibitively high for a major housebuilder to join the auction. McStone has cornered 60% of the retirement homes market in the UK and, with Britain’s ageing population, it is an attractive proposition despite a 20% drop in …