Shares in Interserve plummeted more than 10% to their lowest point since 1985 on Monday, as growing concerns over the UK contractor’s financial health prompted investors to raise their short positions in the company.
The slide will fuel fresh fears over another government contractor, nine months after the liquidation of Carillion, which left creditors and pensioners nursing steep losses.
The UK Cabinet Office is keeping a close watch on outsourcers including Interserve and Babcock, which are two of the Ministry of Defence’s biggest suppliers.
