Aug 14 Thousands of British construction jobs
could be lost if Balfour Beatty Plc was to accept
Carillion Plc's proposed merger offer to create a 3
billion pound ($5 billion) giant, the Times reported on
Thursday, citing sources.
Balfour's Executive Chairman Steve Marshall and Carillion
CEO Richard Howson had a fundamental falling out over the future
size and shape of Balfour's UK construction arm, the daily said,
without plainly stating who its sources were. (thetim.es/1BhHndv)
The two companies revealed in July they were in talks, but
Balfour walked away only days later after Carillion insisted it
cancel the planned sale of its U.S. engineering and design
business Parsons Brinckerhoff.
Carillion earlier on Thursday said it had told Balfour's
investors that a merger would deliver 175 million pounds in cost
savings a year, and if the deal was sealed it would overhaul the
rival firms' British construction business.
Balfour responded by saying it had "serious reservations"
about whether the synergies could be achieved and warned that
the substantial rescaling of its UK construction business could
cause the firms to incur costs running into "many hundreds of
millions of pounds".
Thousands of jobs could be lost if Balfour's construction
arm was to be significantly downsized, sources told the Times.
The business employs about 9,000 people, the daily said.
A spokesman for Carillion declined to comment. Balfour could
not immediately be reached outside of regular business hours in
($1 = 0.5994 British Pounds)
(Reporting by Esha Vaish in Bangalore)