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Washington Mutual surged on reports that private-equity firm TPG and other investors are on the verge of injecting $5 billion into the battered savings and loan company. Facts, though, are hard to come by as TPG declined comment, and the supposed object of its affection didn't return requests for comments by the time of publication.

The lack of official confirmation though didn't stop Washington Mutual (nyse: WM - news - people )'s stock from gaining 14.8%, or $1.50, to $11.67, in early-morning trading. The would-be cash would allow the country's largest savings and loan company to ease its pressing capital requirements that stem from the mortgage crisis.

According to the report, the investment would be structured as both a common and preferred stock offering, adding that the preferred stock could be later converted to common shares, subject to a shareholder vote.

The report said the plan would likely eliminate, at least for now, the potential that the thrift will be acquired by J.P. Morgan Chase (nyse: JPM - news - people ) or another large financial institution. Morgan recently swooped in to pick up Bear Stearns in the most notorious deal since the subprime crisis began. (See: "What We Learned From Bear")

TPG is also expected to get one seat on the company's current 14-member board, the paper said. According to the report, which was published by the Wall Street Journal, other investors in the group include large current WaMu shareholders, and may also involve other buyout firms, it said. Still, an agreement has yet to be finalized, and the talks could fall through.

J.P. Morgan executives have been studying WaMu's books since March and made a preliminary offer, but discussions between the two firms ground to a halt last week, according to a person familiar with the situation.

Thomson Financial contributed to this article.

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