Serco hammered on £550m rights issue news

By Jon Hay
10 Nov 2014

Serco, the UK outsourcing group, had a horrible day in the stockmarket on Monday, as its shares plummeted by 32% after it announced £1.5bn of impairment charges and a £550m rights issue. After that, the shares remained stable for the next three days.

Bank of America Merrill Lynch and JP Morgan Cazenove have fully underwritten the rights issue on a standby basis. It is expected to be conducted in the first quarter of 2015.

Serco also cancelled its final dividend for 2014 and cut £20m from its operating profit forecast, to ...

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