Interserve share price rockets almost 50 per cent | City A.M.

Shares in troubled outsourcer Interserve today rocketed by almost 50 per cent.

JP Morgan settled a string of equity swaps totalling almost six per cent of Interserve’s market value, according to a regulatory filing at lunchtime.

The sharp rise in Interserve’s stock will raise hopes it is close to agreeing a rescue package with lenders.

Read more: Interserve rescue plans boosted by white knight’s £140m debt trade

Last year Interserve slashed profit projections and warned it would breach banking covenants.

It agreed short-term funding of £180m in December, which must be refinanced by the end of March.

Shares have tumbled in recent months as investors fear Interserve is on a similar path as failed rival Carillion.

However, last weekend a Scottish brewing tycoon confirmed it had bought £140m of Interserve’s bank debt and was ready to support the firm’s restructuring.

Interserve’s shares eased back in the final minutes of trading, ending the day up 44.6 per cent.

Read more: Interserve: Crucial refinancing talks have not “stumbled”