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WaMu Gets Hedge Fund Cash Offer: Report

U.K. hedge fund Toscafund Asset Management has approached Washington Mutual, offering to participate in any consortium looking to recapitalize the bank, The Wall Street Journal reported on Wednesday.

Citing a person familiar with the matter, the Journal said on its Website that the London-based firm approached WaMu's board this week with an offer to invest its own money.

Washington Mutual shares rose more than 12 percent on Tuesday amid speculation of a possible capital infusion by Goldman Sachs or Warren Buffett.

The shares closed down about 2 percent at $11.64 on the New York Stock Exchange on Wednesday.

Last week, shares of WaMu, the largest U.S. savings and loan which has been battered by mortgage losses, fell after a report in The Wall Street Journal said it has approached private equity firms and sovereign wealth funds about possible cash infusions.

Neither WaMu nor Toscafund were immediately available.