September 27, 2017 / 7:10 AM / in 22 days

Carillion shares soar after report Middle East buyer eyeing company

Sept 27 (Reuters) - Shares in Carillion 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. (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. ($1 = 0.7478 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Rachel Armstrong)

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