Builder Balfour Beatty (BBY.L) today announced news it has dismissed Carillion’s latest approach to takeover the company, branding it “opportunistic” and accusing Carillion of wanting to lower the companies exposure to UK construction amid a time of recovery for the UK building business.
In reaching its decision on the merger proposal, the Board has considered:
the potential for synergies;
cost and execution risks;
a reduced exposure to recovery in UK construction;
risk of revenue and cost leakage; and
the impact of terminating the Parsons Brinckerhoff sales process.
The Board has also considered the opportunities represented by pursuing its independent strategy, the benefits of which will accrue 100% to its shareholders. These include:
a recovering UK construction business;
the opportunity to deliver further efficiencies;
a strong US construction business in a growing market;
a leading Investments business;
material exposure to recovery in the UK; and
the anticipated successful sale of Parsons Brinckerhoff
Balfour Beatty said in a statement “In evaluating the proposed combination the Board also considered the right strategic approach to maximise value for shareholders. The Board believes this is the right time to sell Parsons Brinckerhoff, but believes Carillion’s approach for the entire Group at this stage of the construction cycle is opportunistic.”
Builder Balfour Beatty (BBY.L) today announced news it has dismissed Carillion’s latest approach to takeover the company, branding it “opportunistic” and accusing Carillion of wanting to lower the companies exposure to UK construction amid a time of recovery for the UK building business.
In reaching its decision on the merger proposal, the Board has considered:
The Board has also considered the opportunities represented by pursuing its independent strategy, the benefits of which will accrue 100% to its shareholders. These include:
Balfour Beatty said in a statement “In evaluating the proposed combination the Board also considered the right strategic approach to maximise value for shareholders. The Board believes this is the right time to sell Parsons Brinckerhoff, but believes Carillion’s approach for the entire Group at this stage of the construction cycle is opportunistic.”
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