G4S and Serco shares fall amid criminal investigations
There were further share losses for security giants G4S and Serco today in the wake of yesterday's damning review revealing the firms had overcharged the British government by tens of millions of pounds for electronic criminal tagging schemes.
G4S, which now faces a criminal investigation after being reported by the Government to the Serious Fraud Office, and Serco both fell another 2pc on top of heavy declines seen yesterday, raising fears the two may be demoted from the FTSE 100 Index at the next reshuffle.
The wider top tier made further progress, up 19.5 points to 6562.9, after record highs notched up on Wall Street overnight after the US Federal Reserve soothed fears earlier this week of an imminent tapering of monetary stimulus.
UK technology engineer Invensys surged 15pc in the FTSE 250 Index after confirming talks over a possible £3.3bn (€266.6bn) takeover by a French power equipment maker.
The group said it had received a cash and shares approach from Paris-based Schneider Electric worth 505pc a share and revealed it was "likely" to recommend a firm offer at that price, sending shares up 63.7pc to 503.8pc.
But G4S and Serco remained in the spotlight in the FTSE 100 as the tagging scandal means both firms will now be subjected to a review of all their contracts.
G4S, which fell 6pc yesterday, dropped another 3.2pc to 209.8pc and Serco fell 14.25pc to 612.25pc after Thursday's 8pc slump.
Credit checking agency Experian was another blue chip faller, down 14.5pc at 1184.5pc amid fears over the impact of slowing economic growth in Brazil, which overshadowed news of a 7pc rise in revenues for the three months to June 30.