Carillion, GKN and Gem Diamonds

“Blue-chips, which had been tipped to open on the front foot, were in negative territory in early trading as traders mulled the collapse of construction giant Carillion,” says AJ Bell Investment Director Russ Mould.

“Carillion’s collapse followed the failure of last ditch talks with its key financial and other stakeholders, including the Government, at the weekend. The group’s fate was sealed when it became clear that no money would be forthcoming from taxpayers to help keep the beleaguered group afloat. Huge efforts have been made to restructure Carillion to give it a sustainable future but it was unable to secure the funding it needed to support its business plan.

“Engineering group GKN was one of the biggest FTSE100 risers after Melrose Industries launched a charm offensive to support its £7bn bid. Melrose has been setting out its stall in meetings with GKN shareholders and explaining the need for a change of culture and leadership. GKN’s shares were up by more than 1.8% in early trading.

“Gem Diamonds’ sparkled at the FTSE All-Share’s biggest riser following the recovery of an exceptional quality 910 carat diamond from the Letseng mine in Lesotho. It is believed to be the fifth largest gem quality diamond ever recovered. Gem Diamonds’ shares were up by over 10.5%.”

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