UPDATE: Carillion walk away after latest merger offer is rejected by Balfour | Smart Highways Magazine: Industry News

UPDATE: Carillion walk away after latest merger offer is rejected by Balfour

Share this story...Tweet about this on TwitterShare on LinkedInShare on FacebookShare on Google+Email this to someonePrint this pageBuffer this pagePin on PinterestShare on StumbleUponShare on Tumblr

The board of Balfour Beatty has rejected Carillion’s latest merger offer leading the construction services company to announce that it is no longer pursuing a deal.

Balfour considered the terms of a revised merger proposal from Carillion that would have seen Balfour retain a 58.268% share of any combined business.

However, after consultation with its major shareholders Balfour said the revised proposal again failed to address the two key concerns that it has consistently raised:

1. The considerable risks associated with the proposed business plan, including the strategy to significantly reduce the scale of the UK Construction business when it is poised to benefit from a recovery in the market; and

2. The continued intention to terminate the sale of Parsons Brinckerhoff at a point when it is reaching a successful conclusion.

A statement from Balfour Beatty said: “Accordingly, the board has unanimously concluded that the proposal is not in the best interests of its shareholders and has decided to reject the proposal. Therefore the board will not be seeking an extension to the PUSU (Put Up or Shut Up) deadline of 5pm on 21 August 2014.

“The board also notes that the revised proposal represents only a small value change in the terms compared to the proposal from Carillion rejected on 11 August 2014.

“The board of Balfour Beatty will therefore continue to be focused on delivering its standalone strategy as set out in the group’s interim results announcement on 11 August 2014.”

Carillion has today (20 August 2014) announced that it is no longer pursuing a merger. In a statement, the company said: “The board of Balfour Beatty has not agreed to Carillion’s proposal or to request an extension to the Put Up or Shut Up deadline which expires at 5pm tomorrow, 21 August 2014. Carillion therefore today announces that it is no longer pursuing such a merger.”

The company will have to wait at least six months before it can come back with a new offer for Balfour.

 
Comments

No comments yet.