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Carillion share price soars amid takeover speculation

Shares in troubled Carillion have jumped this morning after speculation that “at least one” Middle Eastern construction firm is eyeing a takeover bid for the firm. 

A suitor is finalising an offer to buy up Carillion’s shares and secure access to the firm’s London listing, according to City AM.

The bidder is reportedly looking to submit a letter of intent to take control of the firm, but is waiting on the details of its strategic update this Friday.

A Carillion spokeswoman declined to comment.

The speculation saw Carillion’s share price open up more than 19 per cent today. At time of writing, shares were up 18.2 per cent at 54.6p.

Carillion was rocked by a major profit warning in July as it revealed an £845m writedown on problem contracts.

The update saw around £600m wiped off the company’s value as its share price dropped to an all-time low. 

The firm announced a management shake-up earlier this month, including the departure of its finance chief Zafar Khan.

Former chief executive Richard Howson, who stepped down in July but was retained as chief operating officer, will also leave at the end of this week.

Carillion is due to report its delayed half-year results on Friday, along with the outcome of a strategic review led by accountants EY. 

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