Carillion Cautions Hedge Fund Speculators

Carillion's board has issued a statement to the London Stock Exchange (LSE) in relation to a recent rally that saw the value of its shares increase by 28 per cent between 2 January and 8 January.

In this morning's announcement, the British multinational facilities management and construction services company states it is unaware of "any material developments that support this share price increase", and adds that it will provide updates on its on-going financial restructuring programme, as appropriate.

The group has been a target of short-selling by institutional investment funds (including hedge funds) for several years.

Carillion's Ordinary 50p shares have been falling since the London Stock Market opened this morning, and are currently trading at 21.65p (a decline of 9.28 per cent on yesterday's closing price).

In a separate development, the Financial Conduct Authority (the UK's financial watchdog) announced last week that it is investigating the timing and content of earlier announcements by Carillion to the LSE.