Balfour Beatty rejects Carillion a second time

Balfour Beatty operatives carrying out pylon works. Photo courtesy of Balfour Beatty
Balfour Beatty operatives carrying out pylon works. Photo courtesy of Balfour Beatty

Balfour Beatty this morning rejected a second merger approach from Carillion, at the same time as announcing a fall in profits for the first half of the year.

 

Weekend press reports suggested that Balfour Beatty and Carillion might patch together a new deal following Balfour’s sudden breaking off of talks last month after Carillion insisted on keeping Parsons Brinckerhoff as part of the merged group. Balfour Beatty however insisted that the sale for a hoped for £650M was to proceed, killing the deal that would have created a merged group with a £3Bn stock market capitalisation and around 80,000 engineering staff.

 

This morning however Balfour Beatty issued a statement stating a number of reasons for rejecting the revised offer, including several risks that ‘cannot be mitigated’, including undermining the Parson Brinckerhoff sales process. The board said there was a risk that a failed sale process would ‘materially impact the motivation and retention of Parsons Brinckerhoff management and employees’ and damage its competitive position in a rapidly consolidating professional services market.

 

Balfour Beatty’s half year results are in line with recent trading updates, with underlying profit of £22M, down from £47M for the same period last year because of problem contracts in the mechanical and electrical services division. Professional services performance was in line with last year and Support Services profits had increased.

 

Infrastructure investments performed well with disposals significantly above directors’ valuations. The order book was described as stable at £13Bn, down 1% from a year ago at constant currency.

Please rate

Comments 

Ctrl + Enter

Most Read

IR35 coming to the private sector in 2020

IR35 coming to the private sector in 2020

Due to changes introduced in the Autumn Budget, from autumn 2020, off-payroll working rules which have only been applicable to the public sector will be also implemented in the private sector as well. What this means, is that the end client (hiring manager) of a worker will now be in the position

Engineering in the UK: Outlook for 2019

Engineering in the UK: Outlook for 2019

Between 2015 till date, engineering has grown exponentially in the United Kingdom (UK) and Europe as a whole. This growth in the range of a 6% rise in number of UK engineering enterprises within the past couple of years has gone on to prove just how relevant to the economy engineers and the science

Ten highest paying I.T jobs in 2019

Ten highest paying I.T jobs in 2019

The I.T industry is arguably the most in-demand industry for technology/Engineering professionals. Once you have the right skill and certification, the I.T industry will jump at the chance to employ you and grant you a befitting role. From application developers to Data Engineers, the sector is in

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.