Balfour Beatty has rejected a second offer to merge with Carillion, only weeks after talks broke down between the two companies.
Steve Marshall, the executive chairman of Balfour, said the terms were only "slightly revised". The revised terms would have kept the 56.5%/43.5% split of the businesses and would have aborted the sell off of Parsons Brinckerhoff, the condition that caused the first deal to founder. Negotiations over the sale of the company are at an advanced stage, and a third round of bids is due in shortly, with a decision expected in the next month or two, according to Mr Marshsall.Â Â
Carillion said that a higher level of synergies than were previously estimated could be achieved from the merger.Â The new deal would have also extended the "put-up or shut-up deadline" to the 28 August.Â
A statement from Balfour Beatty said its board had lost confidence in the likely delivery of a successful transaction. It added that the disposal of Parsons Brinckerhoff was a "key strategic objective of the group, particularly as there is no strategic logic for its retention other than to enhance the earnings of the combined group".Â
Carillion said it "will give further consideration to its position and will make a further announcement in due course. In the meantime, there can be no certainty that any offer will be made by Carillion or as to the terms on which any such offer might be made".