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Economic Development

Carillion ups ante with improved offer for Balfour Beatty

Black Country support services makes latest bid to tempt rival into merger deal with 36 per cent premium on previous valuation

Balfour Beatty, which is leading the Midland Metro tram extension in Birmingham city centre, has been handed a revised merger deal from rival Carillion

Support services giant has made an improved offer for rival group

The listed, Wolverhampton-based group said it would offer Balfour's shareholders a 36 per cent premium for their shares.

In a statement to the stock exchange, Carillion said it hoped that Balfour would re-engage in merger discussions after calling at the end of July and then rejecting a later,

Carillion, which built the said it would offer a 58.268 per cent share for Balfour Beatty shareholders based on the current undiluted ordinary share capital of each of Balfour Beatty and Carillion.

It would also offer a cash dividend or equivalent of 8.5 pence per Balfour Beatty share, totalling £59 million, which would value Balfour Beatty at £2.08 billion.

Balfour Beatty, which is building the extension to the Midland Metro in Birmingham city centre, had previously agreed to a 56.5 per cent share for Balfour Beatty shareholders.

Carillion said this improved proposal represented a premium of 36 per cent to the 'one-month volume weighted average price' prior to July 24 when about the fact they had entered talks.

Balfour Beatty announced in May that it wanted to sell its consultancy arm Parsons Brinckerhoff but Carillion has been steadfast in its belief that a merged group should have Parsons within it.