Qinetiq shares in success

Shares in Qinetiq, the former Ministry of Defence arm being floated by the Government, rose over six per cent in the first day of trading on Friday.


Shares in Qinetiq, the former Ministry of Defence (MoD) arm being floated by the Government, rose over six per cent in the first day of trading on Friday.



US Investor Carlyle Group made £227 million from the flotation and retains 12.9 per cent of interest, and the MoD cut its stake to 23.7 per cent.



The privatisation, the first under the current Labour administration, made around £290m for the Government, which Defence Procurement Minister Lord Drayson said was an excellent result for the taxpayer, armed forces and UK economy.



The profits made by Carlyle Group drew some criticism as the MoD sold a 30.5 stake to it for just £42.4 million pounds in 2003.