Balfour Beatty CEO scotches talk of hostile bid from Carillion
Carillion is in no position to launch a hostile takeover for Balfour Beatty, according to Balfour Executive Chairman Steve Marshall, Building.co.uk reported on 1 August. Marshall said arrangements agreed by the two UK-listed construction companies before initial merger negotiations collapsed on 31 July prevented such a move. He added that hostile bids require money, the report said.
Marshall went on to say that Balfour was no longer interested in a deal with Carillion, even if Carillion were to alter its stance opposing Balfour’s planned disposal of its Parsons Brinckerhoff subsidiary. He stated that Carillion’s proposal was evidently non-viable and would have left Balfour Beatty’s investors vulnerable to value loss, the report said.
Following Marshall’s comments, Carillion proposed revised terms and the two sides re-entered negotiations but Balfour went on to reject the proposal on 11 August.
Marshall said no other prospective buyers have contacted Balfour Beatty regarding an acquisition or a merger, the item reported.
The report noted that Carillion’s 2013 accounts showed GBP 215m net borrowing. London-based Balfour Beatty has a GBP 1.64bn market cap while Carillion, based in Wolverhampton, is worth GBP 1.38bn on the LSE.
Source Building