Balfour Beatty Rejects Carillion’s Revised Proposal

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Aug. 11 (Bloomberg) –- Bloomberg’s Caroline Hyde reports on Balfour Beatty rejecting Carillion’s revised bid for a merger. She speaks to Mark Barton on “Countdown.” (Source: Bloomberg)

Earlier.

They have said, no thanks.

The news that we were running overnight, according to people familiar, carillion approached.

This deal fell apart over this new york-based engineering consultant.

Potential he, bell for bt was in the process of selling that unit.

Carilluioion wanted them to keep that union.

They had re-approached about four.

-- baflfour.

They are coming out with numbers again today.

They say, look, competitive sales are well advanced, subject to satisfying the interest of key stakeholders.

The group will return up to 200 million pounds to shareholders.

Clearly, hopes of that shale might disappoint shareholders.

Balfour doesn't have a chief executive at the moment.

The company has not been benefiting from the sudden boom in construction that we have seen in the u.k. it has had cancellations to projects as well.

A profit warning.

The chairman has taken over on an interim basis.

Carillion has got this services division which is booming.

It seemed as if it was the perfect fit.

They say at the moment that confirmation with carillion that they were supportive, and in the evidence of a joint leak, announcements would be released.

Overall, they are saying carillion's request was predicated on balfour beatty's retaining the proceeds from the sale of parsons.

Clearly, they haven't been able to agree on the back of this.

What the equity split was going to be, 56.5% of the company would go to balfour beatty shareholders.

43.5% would go to carillion shareholders.

Carillion does seem to be -- there were a number of risks.

They were mindful of the synergy that could be achieved.

They lost confidence in the likely delivery of a successful pact.

This isn't the only deal.

We had lafarge earlier this year in a $40 billion merger.

A couple years ago, we had the spanish builder.

It is all happening because of a decline in construction work.

This was the rationale behind this construction merger which would have been the biggest construction company in the u.k. they have to go it alone and show their shareholders it is wise to do so.

Balfour beatty says they are implementing cost efficiencies.

They have had operational issues.

Balfour beatty shares when the deal was called off in july are down by 6%. carillion down by 9%. investors were unhappy that the deal was called off.

Which is why we said carillion came back to the table.

Shares are down.

Investors want this deal.

It seems that balfour beatty isn't quite agreeing.

Meanwhile, let's take a look at china.

We did get the latest inflation

This text has been automatically generated. It may not be 100% accurate.

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