Carillion’s directors decided only yesterday that it was “essential to retain the stability and dependability of Parsons Brinckerhoff’s earnings” for a merger to work.
Up to this point, Balfour Beatty thought that both sides understood that its sale of its US engineering subsidiary was going ahead, come what may. Carillion seeking to block that sale proved a deal-breaker for Balfour Beatty who promptly upped sticks.
A subsequent statement released by Carillion today indicates that it had not yet totally accepted that the breakdown in talks cannot be rescued and was trying to work out what its next move should be.
It said: “The board of Carillion continues to believe in the powerful strategic rationale of a combination and the capability of such a combination to create very significant shareholder value. The board of Carillion will therefore give further consideration to its position in the light of its requirements that (i) due diligence would have to be concluded to its satisfaction; and (ii) the boards of Carillion and Balfour Beatty would have to recommend a combination to their shareholders.”
Carillion said it would make a further announcement in due course.