Balfour Beatty’s still ‘no’ to Carillion’s merger offerMd Noman Siddique (Author) Published Date : Aug 15, 2014 14:32 IST
After getting the second proposal of merging with Carillion the British construction firm Balfour Beatty has reaffirmed their rejection of the merger proposal.
Earlier Balfour have rejected the merger proposal of Carillion their rival company which however costs 3 billion pounds was better for Balfour.
Both the companies where in talks for the merger but Balfour walked away from the talks after they received an offer to cancel their US planned units sell by Carillion which was revealed from the two companies.
And after that both the companies have started to counter each other s statements where Balfour informed that the offer which they received from Carillion of merging will not be able to give the proper value for their share holders as they can give that by their independent firm.
But there is still some time to settle things for both the rival companies as the takeover rules suggests that Carillion has the time till August 21 to propose the final offer.
According to the statement of Balfour Beatty it said, The proposal remains unchanged to that rejected on Aug. 11 2014. The board reaffirms its rejection of the proposal.
Balfour also said that the proposal given by Carillion which they have to reduce their British construction revenues which is up to its one third which could back fire the firm.
However according to Carillion the proposal would help Balfour Beatty to save at least 175 million each year by the end of 2016 which is more than the analysts expected.
Balfour Beatty’s still ‘no’ to Carillion’s merger offer