LONDON Aug 10 British infrastructure company
Balfour Beatty and construction firm Carillion
have resumed talks on a possible 3 billion pound ($5 billion)
merger deal, the Sunday Times reported, citing unnamed financial
Balfour Beatty said two weeks ago it had broken off merger
talks after Carillion insisted it cancel the planned sale of its
U.S. unit and keep it within the merged company, just days after
a possible deal was revealed.
Members of the Balfour Beatty board, led by Executive
Chairman Steve Marshall, met with Carillion on Friday evening
for talks on how to save the deal, the paper said.
Carillion has "made a tweak" to its offer in an effort to
win Balfour's agreement, the newspaper reported, but did not
The basic deal that would give Balfour shareholders a
majority stake in the combined company remains unchanged, the
paper cited the sources as saying.
Balfour has asked for time to make a decision, the Sunday
Times reported, however Britain's takeover rules dictate it must
do so by August 21.
A spokesman for Balfour declined to comment on the report,
while officials at Carillion were not immediately available for
Carillion came forward with its offer after a difficult 18
months for Balfour, during which the company has had to issue a
series of profit warnings and lost its chief executive.
Balfour announced in May that it would sell its U.S design
and engineering unit Parsons Brinckerhoff. It acquired the
business in 2009 for 636 million pounds but said it had failed
to deliver significant benefits.
British engineering firm WS Atkins and Canada's WSP
Global to be competing for the business, The Telegraph
reported last week.
Analysts estimate a merger between Balfour and Carillion
could create cash savings of 250 million pounds.
($1 = 0.5962 British Pounds)
(Reporting by Li-mei Hoang; Editing by Raissa Kasolowsky)