* Says reduces net debt 1.55 billion pounds
* Debt reduction hampered by 200 million pound currency charge
* Says talks with debt providers continue, no outcome
* Home completions fall 35 percent in 2008
* Shares slide as much as 28 percent
(Adds details, company and analyst comment, share price)
By Lorraine Turner
LONDON, Jan 13 (Reuters) - Housebuilder Taylor Wimpey said in a trading update on Tuesday it had reduced its debt pile, but the absence of specific details on refinancing plans caused its shares to plunge up to 28 percent.
Taylor Wimpey, which in December asked its banks to defer tests of the conditions attached to its loans, said its talks with debt providers "continue on a constructive basis".
By 0935 GMT, shares in Taylor Wimpey were down 12 percent at 22 pence, having been down up to 28 percent in early trade. This follows a recent rally after the shares hit a record low of just under 5 pence at end-November 2008.
Analysts said the trading update was broadly in line with expectations. "But there is no finalisation (on refinancing talks) which may make people a little edgy," Numis equities analyst Chris Millington told Reuters.
Taylor Wimpey said on a conference call that its refinancing talks would be in a similar vein to its peers.
"I don't think you'd necessarily see us being materially different from others," Chief Executive Peter Redfern said.
Bovis Homes on Friday detailed the cost of refinancing its debts, which included 8 million pounds in arrangement fees to agree on new 220 million pound debt facilities. It will also pay higher interest rates -- of about 6 percent -- on the debt.
Meanwhile, Taylor Wimpey said its net debt at end-2008 was 1.55 billion pounds ($2.3 billion), from 1.7 billion pounds at end-June 2008.
The company said it would have reduced debt by more than 300 million pounds had it not been for a negative hit of 200 million pounds resulting from exchange rate movements.
VOLUMES LOWER
Taylor Wimpey said in Britain, home completions fell 35 percent to 13,394 units in 2008, and that its order book had dropped 17 percent to 4,231 homes.
The proportion of unsold houses remained at its highest levels since 1992, the Royal Institute of Chartered Surveyors said on Tuesday despite the fall in British house prices easing slightly in December.
Taylor Wimpey said its cash spend on work in progress is running 50 percent below that of 2007, whilst its average selling price fell to 171,000 pounds, from 188,000 pounds in 2007.
The company, formed by the merger of Taylor Woodrow and George Wimpey in July 2007, said it will continue to make cost reductions this year and lower the volumes of work in order to reduce debt levels further.
Redfern said the company will make significantly fewer job cuts this year, compared with 2008, when just under a third of its work force -- or 1,400 jobs -- were slashed.
Taylor Wimpey said it is in the process of revaluing its land, and anticipates further land write downs in its 2008 year-end accounts. This follows land writedowns of 690 million pounds to date.
The group's U.S. business remains weak with completions with conditions tougher in the second half than the first half. Completions in North America dropped to 5,421 homes compared with 6,740 in 2007 on a pro-forma basis. (Editing by Paul Hoskins and Andrew Macdonald)