18th Aug 2014 12:56
LONDON (Alliance News) - A major shareholder in both Balfour Beatty PLC and Carillion PLC has called for the pair to get back round the negotiating table and urged Carillion to increase its offer for its rival, the Financial Times reported Monday.
"There's scope for Carillion to modestly improve its terms. If they do that, Balfour Beatty should reopen merger talks unless they have got a credible alternative," the FT quotes David Cumming, the Head of UK Equities at Standard Life Group PLC, saying during an interview with BBC Radio 4.
"We do believe there are significant synergy benefits from a deal that Carillion can take a lot of cost out and deliver that to the benefit of both shareholders. If they can agree terms, there is a case for a merger," Cumming added.
Standard Life owns a 3.5% stake in Balfour and a 2.4% stake in Carillion.
http://on.ft.com/YowabU
By Sam Unsted; [email protected]; @SamUAtAlliance
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