March 27 British construction company Kier Group
Plc said it was considering making an offer for
infrastructure maintenance provider May Gurney, setting
the stage for a possible bidding war with smaller peer Costain
Costain, which builds and maintains highways, rail stations
and airports, said on Tuesday it had agreed to merge with May
Gurney in a deal that would create a company with annual revenue
of 1.6 billion pounds ($2.42 billion).
Shares in May Gurney Integrated Services Plc, which
maintains highways, rail and utilities services, were up 30
percent at 239 pence on the London Stock Exchange at 1408 GMT.
Kier said on Wednesday it had made previous attempts to
discuss a potential combination with May Gurney and had been
monitoring the company's recent performance.
The construction business of Kier offers engineering and
contracting services for infrastructure and building projects,
while its property business builds houses and invests in office,
industrial and retail properties.
Kier's shares were down 3 percent at 1,138 pence, while
Costain shares were down 5 percent at 289 pence.