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Jarvis shareholders bail out amid uncertainty

JARVIS shareholders bailed out of the stricken support services firm last week amid panic over the future of the company.

American vulture fund K Capital sold more than 34.5 million shares over three days last week - nearly its entire stake in the firm and 24 per cent of the total issued share capita - as the share price hovered just over 10p.

Morgan Stanley Securities has also been steadily selling shares to take its interest in the company below the notifiable 3 per cent level.

The firm is already at the mercy of the Royal Bank of Scotland and Barclays after announcing a further £80 million of losses last week.

Fife Council in Scotland also held meetings last week over a replacement for its £100 million schools project, where Jarvis was removed as preferred bidder in October.

Jarvis also announced the sale of its Private Finance Initiative bidding operations to Hochtief as part of its restructuring strategy.

The operation comprises three projects at preferred bidder stage and under the terms of the deal the Jarvis facilities management team will carry out FM work on the relevant projects.The deal is subject to due diligence.