Shares in Amec Foster Wheeler (AMFW) had been staging something of a resurgence this year, but tumbled by more than a fifth last week after management decided to expand a strategic review. Results of the review are not expected until March, and will now include an appraisal of the capital structure.
IC TIP:
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Analysts at Canaccord suggested the fall was due to chief executive Jon Lewis's name check of a rights issue, and that it was "tempting to put this down to inexperience in dealing with financial markets". Disposal plans of three assets for £100m are nearing completion, although an increase in costs associated with the restructuring are likely to keep pressure on net debts.
