Shares in Jarvis have soared by 75% since Wednesday on the back of speculation that the company is to be bought.
Jarvis issued a statement yesterday confirming the offer:
“The Board of Jarvis notes the rise in the Company’s share price. The Board wishes to emphasise that although a tentative inquiry has been made about a possible offer, the inquiry is extremely preliminary in nature and there can be absolutely no certainty that any approach or offer will be forthcoming.”
The company has suffered from a shrinking portfolio of work from its major client Network Rail, who has decided to postpone some work, which prompted 450 job cuts, to outrage from the RMT Union.
Jarvis posted a small operating loss for the year in August but could be highly prized by a contractor because of the large quantity of specialised plant that would be useful in the rail sector.
Shares rose from a close of 13.5p on Tuesday to a high of 23.75p at the close of trading yesterday.