Engineering firm Jarvis yesterday said it was in talks over the possible sale of its roads business.
The firm, which did not give any further details, recently signalled a turnaround in fortunes as it reported significantly reduced annual losses.
The company posted pre-tax losses of £58.2 million for the year to March 31, which was in stark contrast to a £391 million deficit a year before.
Jarvis, which suffered financial problems since the Potters Bar rail crash in 2002, has hinted it was now on course to stage a complete recovery.
The company benefited from a financial overhaul last year which saw managers hand 95 per cent control to creditors in a debt-for-equity restructuring.
It also sold a number of peripheral businesses while pledging to focus on core businesses including rail renewal, roads and plant hire work.