Termination of Merger Discussions

RNS Number : 8359N

Balfour Beatty PLC

31 July 2014

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

FOR IMMEDIATE RELEASE

31 July 2014

Termination of merger discussions by Balfour Beatty plc ('Balfour Beatty') with Carillion plc ('Carillion')

Balfour Beatty announces that it is terminating discussions with Carillion regarding a possible merger with immediate effect. The termination of discussions follows Carillion's wholly unexpected decision to only progress the possible merger in the event that Parsons Brinckerhoff remained part of the potential combined entity. This change is contrary to the basis upon which the Balfour Beatty Board agreed to engage in preliminary discussions. It is also contrary to the joint announcement released on 24 July 2014 which confirmed that the sale of Parsons Brinckerhoff would be unaffected by the merger discussions and also a presentation to Balfour Beatty's Board by Carillion on 28 July 2014. This change in the proposed terms is not acceptable to the Board of Balfour Beatty.

Balfour Beatty will proceed in accordance with its own business plan, including the competitive sale process of Parsons Brinckerhoff currently well underway. It will also continue to actively progress its search for a Group CEO.

Balfour Beatty confirms there is no material new information on trading since 3 July 2014 and will publish its interim results on 13 August 2014. 

This announcement, that Balfour Beatty has no intention to make an offer for Carillion, is made in accordance with Rule 2.8 of the Code. As a result of this announcement Balfour Beatty will be bound by the restrictions contained in Rule 2.8 of the Code. For the purposes of Rule 2.8 of the Code, Balfour Beatty reserves the right to make or participate in an offer for Carillion (and/or take any other action which would otherwise be restricted under Rule 2.8 of the Code) within the next six months following the date of this announcement in the circumstances set out in Note 2 of Rule 2.8 of the Code.

This announcement is not being made with the consent of Carillion.

Enquiries:

Balfour Beatty
Anoop Kang, Head of Investor Relations
[phone]

Patrick Kerr, Director of Corporate Communications
[phone]

Maitland

Neil Bennett

Liz Morley

[phone]

Publication on website

A copy of this announcement will be made available subject to certain restrictions relating to persons resident in restricted jurisdictions on Balfour Beatty's website at www.balfourbeatty.com by no later than 12 noon (London time) on 1 August 2014.

The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

 

END

 

 

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