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| Balfour rejects a third takeover bid from rival Carillion | Balfour rejects a third takeover bid from rival Carillion |
| (35 minutes later) | |
| Construction firm Balfour Beatty has rejected a third takeover offer, worth more than £2bn, from rival Carillion. | Construction firm Balfour Beatty has rejected a third takeover offer, worth more than £2bn, from rival Carillion. |
| The improved offer on Tuesday represented a 36% premium to the recent average price of Balfour shares. | The improved offer on Tuesday represented a 36% premium to the recent average price of Balfour shares. |
| But Balfour said Carillion's offer failed to address its two key concerns. | But Balfour said Carillion's offer failed to address its two key concerns. |
| Balfour wants to sell is US unit, which Carillion opposes. Meanwhile Balfour said it remains unconvinced that a merger with Carillion will deliver the costs savings its rival suggests. | Balfour wants to sell is US unit, which Carillion opposes. Meanwhile Balfour said it remains unconvinced that a merger with Carillion will deliver the costs savings its rival suggests. |
| Carillion's improved offer would have given Balfour shareholders control of 58.268% of the combined company, rather than 56.5% under the previous offer. | Carillion's improved offer would have given Balfour shareholders control of 58.268% of the combined company, rather than 56.5% under the previous offer. |
| Tuesday's revised offer came ahead of a 5pm "put up or shut up" deadline on Thursday imposed under Takeover Panel rules. | Tuesday's revised offer came ahead of a 5pm "put up or shut up" deadline on Thursday imposed under Takeover Panel rules. |
| No extension | No extension |
| Balfour said it would not be seeking an extension to the deadline, adding that the revised offer was only a small improvement of £55m on Carillion's second offer, which was rejected on 11 August. | Balfour said it would not be seeking an extension to the deadline, adding that the revised offer was only a small improvement of £55m on Carillion's second offer, which was rejected on 11 August. |
| Carillion's latest offer continued to assert that it would halt the planned sale of Balfour's US business, Parsons Brinckerhoff, which has become a key block to any deal. | Carillion's latest offer continued to assert that it would halt the planned sale of Balfour's US business, Parsons Brinckerhoff, which has become a key block to any deal. |
| Balfour has previously said it remains committed to the sale of the business and the return of up to £200m of capital to shareholders. | |
| Last week, Balfour disputed Carillion's claim that a merger would provide a £1.5bn windfall as a result of savings and cut the cost base of the combined group by at least £175m a year by the end of 2016. | Last week, Balfour disputed Carillion's claim that a merger would provide a £1.5bn windfall as a result of savings and cut the cost base of the combined group by at least £175m a year by the end of 2016. |