Shares in Interserve fell on Wednesday after the UK Cabinet Office said it was setting up a team to monitor government outsourcing companies following the collapse of Carillion this week.
Carillion, which issued a series of profit warnings last year, was put into liquidation on Monday, raising questions about why those warnings from a key government services provider were ignored.
Interserve, which issued a profit warning in September, has been put on the Cabinet Office team's watch list. The FTSE 250-listed company employs 25,000 in the UK and around 80,000 worldwide.
The company's shares fell as much as 14% in opening trade, despite last week reporting in a trading update that its 2017 results would be in line with expectations.
However, these expectations had already been lowered by September's profit warning following a £195m provision on an energy contract.
An unnamed government official was widely quoted as saying: "Ministers are very worried about Interserve, but the team is small and low-key as they are not wanting to unsettle."
After an hour’s trade, Interserve shares had recovered some poise and were down just 3.3% at 117p.