Partner Article

Balfour Beatty rejects third merger proposal from Carillion

Infrastructure group Balfour Beatty has today rejected the third merger proposal from construction firm Carilion, with Newcastle-based subsidiary Parsons Brinckerhoff continuing to cause issues between the companies.

Balfour Beatty reports that the proposal remains unchanged to that rejected on 11th August, and it reaffirms its rejection of the proposal.

The firm states that it is the right time to carry out the anticipated successful sale of Parsons Brinckerhoff, and it believes that Carillion’s approach for the entire group at this stage is opportunistic.

Balfour Beatty says the combined group would be of a significantly larger scale and diversity than the Carillion management team has previously managed.

The group decided to pursue a sale of Parsons Brinckerhoff, which is now in its advanced stages and the termination of this would risk damaging a significant part of the value of Balfour Beatty.

The group is expecting a return of up to £200 million of capital from the sales of Parsons Brinckerhoff, which is expected to further strengthen Balfour Beatty’s financial position.

This was posted in Bdaily's Members' News section by Ellen Forster .