Wolverhampton Wanderers owner Steve Morgan is upping his stake in housebuilder Redrow, a company he founded, and asking to rejoin the board.

Morgan took his holding from 17% to 23.5% today after buying a parcel of stock from Toscafund Asset Management, the hedge fund run by Michael “The Rottweiler” Hughes.

Tosca is thought to be sitting on significant losses from its investment in Redrow, one of several builders in which it has built up stakes.

Redrow said Morgan also has an interest through contracts for difference in a further 6.4% of the shares, which if closed out would take him up to the 29.9% at which a full takeover bid must be made.

“Mr Morgan has proposed that he should join the board of Redrow in an executive role which, together with other proposals, would result in a fundamental change in the composition of the board,” said Redrow. It adds that it is “seeking clarity” on the proposals.

Redrow shares jumped 271/2p to 1621/2p. The company said two weeks ago that sales in the second half of 2008 fell by 60%. All housebuilders have been badly affected by the collapse in the housing market.