Troubled infrastructure giant Carillion insists it is unaware of any material developments that would have caused its share price to soar yesterday.
The company, which has had a torrid time of late with 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 in a statement today: “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 immediately following the statement (and as the market opened) to 21.7 but soon recovered mid-morning to 22.35.
The company is reportedly set to meet with HSBC, Santander and Barclays in a bid to cut its debt pile and clinch new funding, PA reports.
Carillion – a major supplier to the Government and 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 2016 and July 2017.