Balfour Beatty rejected the merging proposal of CarillionTim Kennedy (Author) Published Date : Aug 11, 2014 13:24 ET
After starting the second merging proposal recently the British infrastructure company Balfour Beatty finally rejected the merging talks with their rival Carillion and informed that the merging may see some risk for the firm.
Balfour has been in talks with the Carillion recently and after cancelling the talks it informed that there is no logic to merge the company as it has some risks on their business.
Balfour has been a loss making company as their construction, engineering and other facilities management expanded over 80 countries all over the world where Carillion was hoping to boost their by merging with Balfour to add some pace on their construction business.
Balfour has been going through tough times after receiving several profit warnings in the last 18 months along with the company also loss their CEO while Carillion has given their first proposal of merging with their rivals on July 24.
Earlier on the first talks Balfour denied holding the talks further as Carillion have asked to cancel the sale of US units which was planned by Balfour earlier.
After that Carillion have revised their proposals for Balfour however that could not satisfy the firm to merge with their rivals.
According to the Chief Executive of Balfour, In our board's judgment, it wasn't a credible proposal that was going to fix all the risks for Balfour Beatty shareholders.
For example, if bidders (for Parsons Brinckerhoff) were not prepared to carry on and if the merger then didn't go through, Balfour Beatty is basically left with a failed merger transaction and damage to Parsons Brinckerhoff, he said.
Balfour Beatty rejected the merging proposal of Carillion