Carillion ‘unaware’ of reason for shares spike

Troubled infrastructure giant Carillion said it is unaware of any material developments that would have caused its share price to rocket on Monday.

The firm, embroiled in an ongoing crisis that has involved a string of profits warnings, saw its shares leap more than 20% as investors held out hope a meeting with lenders later this week would secure a rescue plan.

However, shares fell almost 10% in early exchanges yesterday after the firm released a statement.

It said: “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.”

The company is reportedly set to meet 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 – has previously said it was scheduled to face creditors and other stakeholders today.

It is believed Carillion’s rescue plan will involve handing back loss-making contracts, revising terms of others and potentially accepting financial support from the Government if it cannot secure private funding.

Shares closed yesterday down 12.65% or 3.02p at 20.85p