Balfour Beatty’s merger rejection for Carillion

Construction outfit Balfour Beatty has set out a detailed rejection of the latest merger advances by Carillion after the suitor turned up the pressure by claiming the tie-up could bring £175 million in annual cost savings.

The Forth Bridge which was repainted by Balfour Beatty. Picture: TSPL

Balfour, which repainted the Forth Bridge, said yesterday that the offer was unchanged from a proposal it had turned down earlier this week, and reaffirmed its rejection, while spelling out its doubts about the synergy claims.

However, analysts at Investec believe that resisting a deal would prove a missed opportunity for Balfour, which earlier this week disclosed a slump in half-year profits and is still looking for a new chief executive.

Balfour’s latest statement came a day after Carillion set out what it said were the powerful financial benefits of creating a £3 billion combined group, and disclosed that it had been in talks with major shareholders.