Carillion sweetens merger offer for Balfour

LONDON Tue Aug 19, 2014 10:26am EDT

LONDON Aug 19 (Reuters) - British construction firm Carillion on Tuesday raised for the third time its merger proposal for engineering company Balfour Beatty, with new terms that value its rival at 2.1 billion pounds ($3.5 billion).

Carillion said under the new offer, Balfour shareholders would have 58 percent share of the combined firm. Balfour shareholders would also get a cash dividend of 8.5 pence per share.

Balfour has rejected two takeover proposals by Carillion to create a 3 billion pound giant that could compete for major international contracts against the likes of Spain's Ferrorival.

Balfour declined to comment immediately. ($1 = 0.6015 British Pounds) (Reporting by Li-mei Hoang; editing by Kate Holton)