Contractor facing insider trading probe

THE City watchdog is investigating contractor Interserve over suspicions of insider trading.

The outsourcer faces a Financial Conduct Authority probe over the timing of market disclosures between July 15, 2016, and February 20, 2017, linked to its incinerator business.

Shares fell in May 2016 when it announced a £70m charge linked to a plant it was building in Glasgow. They jumped in August when it said it was pulling out of that part of the market but still expected only the £70m charge.

In November 2016 Interserve announced it had been sacked from the Glasgow project. Shares then fell more than 30pc in February 2017 after it raised the expected charge to £160m.

The FCA will look at whether inside information about these announcements allowed traders to cash in.