BREAKING NEWS

BREAKING NEWS

Carillion shares soar after report Middle East buyer eyeing company

Now Reading:

Carillion shares soar after report Middle East buyer eyeing company

Text size Aa Aa

(Reuters) – Shares in Carillion <CLLN.L> opened up 19.4 percent on Wednesday after a media report said a Middle Eastern construction company is preparing an offer for the struggling construction and support services company. City A.M. newspaper cited a source after market close on Tuesday that final touches were being put to a bid, adding that the suitor plans to submit a letter of intent for a takeover offer. (http://bit.ly/2fraUwK) Carillion did not immediately respond to a request for comment. The company has lost nearly 75 percent of its market value since mid-July when it booked an 845 million pound ($1.13 billion) writedown on problematic construction contracts and announced the departure of its chief executive. Carillion’s troubles have been compounded by its debt pile and pension obligations and trouble collecting cash from clients.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Rachel Armstrong)
euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.