Carillion could enter administration on Monday unless UK backs rescue: Sky

LONDON (Reuters) - British building and services company Carillion could enter administration on Monday unless Britain's government backs a rescue plan, Sky News reported on Saturday, citing sources.

Carillion said on Friday it remained in "constructive discussions" with its creditors and suggestions that they had rejected its business plan were incorrect.

A collapse of Carillion, which provides services to government departments including justice, health and education, and has built hospitals, roads and rail lines, would be felt across Britain and also in Canada and the Middle East where the 200-year-old company has worked on landmark projects.

Carillion declined to comment on Saturday's Sky News report, which said government officials are due to meet on Sunday to discuss the company's future.

Shares in Carillion plunged almost 30 percent to a new low on Friday after Sky News reported it had put administrators on standby, while a person familiar with the matter told Reuters that creditors did not like the plan put forward.

Tensions over the future of Carillion have been rising for weeks and on Thursday ministers overseeing everything from justice to transport, health and education met to discuss how they should respond to the possible demise of a business that plays a central role in British public life.

(Reporting by Andy Bruce; editing by Alexander Smith)