Mouchel, the infrastructure group which rejected a £170m takeover bid from Costain 16 months ago, yesterday said all the restructuring options it is looking at would result in "only limited value for existing shareholders".
The shares fell 34 per cent to 3.8p, a far cry from the 153p a share Costain had offered.
Mouchel has been hit by a series of profit warnings, contract errors, management resignations and the need for a banking lifeline since the end of 2010.
It said it expected to announce a balance sheet restructuring by the end of July which would give it a "long-term, sustainable capital structure".
It added that it had increased its target for cost savings from £18m to £21m.Reuse content