Carillion clueless over shares leap
The company is embroiled in an ongoing crisis that has involved a string of profits warnings.
Troubled infrastructure giant Carillion has claimed it is unaware of any material developments that would have caused its share price to rocket on Monday.
The company, which is embroiled in an ongoing crisis that has involved a string of profits warnings, saw its shares leap over 20% as investors held out hope that a meeting with lenders later this week would secure a rescue plan.
However, Carillion said on Tuesday: “Carillion notes the recent increase in the group’s share price. The group is not aware of any material developments that support this share price increase.
“Further updates on discussions with the group’s financial stakeholders will be provided as appropriate.”
Shares fell almost 10% to 22p following the statement.
The company is reportedly set to meet with HSBC, Santander and Barclays in a bid to cut its debt pile and clinch new funding.
Carillion – a major supplier to the Government and named among the firms awarded deals for the building of phase one of the HS2 rail line – previously said it was scheduled to face creditors and “certain other stakeholders on Wednesday January 10”.
It is believed that Carillion’s rescue plan would involve handing back loss-making contracts, revising the terms of others and potentially accepting financial support from the Government if it cannot secure private funding.
In December, the firm struck an agreement with its lenders to defer a crucial financial covenant test, a development that gave the troubled group more breathing space.
To compound its woes, Britain’s financial watchdog has opened an investigation into Carillion over the “timeliness and content” of announcements made between December 7 2016 and July 10 2017.