Carillion plays down 26% share price rise

Carillion has played down yesterday’s 26% rise in its share price as investors reacted to hopes of a funding deal for the troubled group.

Despite the big one-day jump in percentage terms, the movement was relatively minor. Its shares rose 5p, to 24p – an improvement which made only a slight inroad into the 170p drop since July.

In a statement to the stock market, Carillion said it was “not aware of any material developments that support this share price increase”.

The jump came on the back of weekend reports that a business plan will be presented to creditors and stakeholders on Wednesday.

There were also suggestions that because of its involvement in key infrastructure projects, such as HS2, a Government-led solution was also possible.

Wolverhampton-based Carillion has been in a crisis since it revealed an accounting black hole last summer.

After Monday’s rise in its share price the group has a market value of around £100m, but has debts in excess of £1bn.