Shares in Carillion PLC (LON:CLLN) edged higher this morning after the beleaguered construction services group brought HSBC on board as its joint financial adviser and corporate broker as it looks to dig itself of the whole it fell in earlier this week.
Shares plummeted in response to the shock profit warning and the FTSE 250-listed company has seen the best part of £600mln wiped off of its market value this week.
Only yesterday, JP Morgan analyst Samuel Bland suggested that the firm probably needs to raise around £532mln in the near future, a view echoed by Jefferies’ Sam Cullen.
“Realistically, we see no future for Carillion without a rights issue of at least £500mln as we believe the group will find it increasingly difficult to win support services work with the balance sheet in its current state,” wrote Cullen in a research note.
Carillion shares added 4% to 58p on Friday.
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