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Scottish fund Kiltearn halves stake in troubled Carillion

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Scottish fund Kiltearn halves stake in troubled Carillion

Scottish fund Kiltearn halves stake in troubled Carillion
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(Reuters) - Scottish investment firm Kiltearn Partners, the largest shareholder in troubled Carillion has halved its stake in the British construction company, a regulatory filing on Monday showed.

Kiltearn Partners cut its stake to 4.94 percent on Dec. 7, from 9.85 percent, Carillion said in a notification of major holdings statement.

Carillion issued its third profit warning in five months in November and said it was heading towards a breach of debt covenants and would need fresh capital.

The firm is fighting for its survival after costly contract delays and a downturn in new business at the company, which handles major infrastructure projects for the British and other governments. Its CEO quit in July.

Carillion disclosed on Aug. 11 that Kiltearn had doubled its stake to 10 percent at the start of February when shares were trading at around 225 pence each, becoming the company's biggest shareholder.

The company's shares have slumped over 90 percent since a profit warning in July and traded at 16.25 pence at 0910 GMT on Monday.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Keith Weir)

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