Shares in the firm leapt over 10 per cent in the first minutes of trading, after Carillion said it had appointed HSBC as joint financial adviser and corporate broker with immediate effect.
Yesterday, shares swung one way and then another after a three-day collapse which wiped 75 per cent off Carillion’s market cap.
At the start of the week Carillion was widely expected to launch a rights issue after it revealed details of an £845m provision against a number of contracts, profits warning and the exit of its chief executive.
KPMG, Carillion's auditor, assisted the company to untangle its problematic contracts.
"Carillion will need to raise a significant amount of money," Liberum analyst Joe Brent said earlier this week.
While a rights issue may still be on the cards, the current share price is likely to lead to Carillion consider a sale of its business of either all or part of the business.
Civil engineer Greg Malpass said plans for Carillion to pursue a sale were unsurprising. Writing for Construction News he referenced earlier comments by Laing O'Rouke boss Ray O'Rouke urging the "need to stop the race to the bottom".
The FTSE 250 firm has over £800m of bank debt arranged by Natwest with a 2020 maturity, according to its 2016 financial statements. Average net borrowing is expected to be £695m, the company revealed at the start of the week.