Saga PLC (LON:SAGA) shares showed the market was not impressed by reports that the over-50s-focused travel and insurance group could sell off its care arm.
The FTSE 250 group, which already has slashed its dividend after swinging to a loss this year, is under more pressure from activist investor Elliott Advisers, which built up a stake after the shares hit an all-time low in the summer.
READ: Activist investor Elliott buys stake in Saga
Saga has retained advisors to help with a potential sale of its domiciliary care business, Sky News reported, though this is a small part of the business, making £6mln of revenue in the first half of the year.
Saga's shares have lost around three-quarters of their value in just over two years as chief executive Lance Batchelor tried to overhaul the group, including a shift to selling third party products, a VIP membership scheme to offset falling numbers of high-spending cruise customers and the launch this year of a new three-year fixed-price insurance product.