Funds ‘bet on’ giant’s collapse

THERE are fears for one of the South West’s biggest employers after it emerged hedge funds are betting on it hitting the rocks.

Investors that made millions of pounds speculating on the demise of the giant Carillion company have now turned their attention to fellow construction behemoth Kier – the firm that built Plymouth’s immense Beckley Point tower, new schools and medical build- ings and which is earmarked for future construction projects.

The builder, which has a Devon base in Plymouth, saw the proportion of its shares on loan to short sellers surge to 18% on Friday, up from 10% a month earlier, according to data from IHS Markit. It means the stock is now among the most shorted on the main London market, the fourth most shorted company according to at least one tracker. Short-selling, usually done by hedge funds, involves paying a fee to borrow shares, selling them, then buying them back at a cheaper price when the company issuing them hits the skids, thus making a profit, then handing them back to the lender.

Kier Group employs more than 1,000 people across the South West and has been involved in many of the region’s most significant construction projects.