11th Aug 2014 05:59
LONDON (Alliance News) - Balfour Beatty PLC is expected to reveal this week that it remains hopeful of selling its Parsons Brinckerhoff US project management business as it attempts to convince its shareholders it can survive without a merger with Carillion PLC, The Times reported Monday.
The group, which is due to post first-half results on Wednesday, is expected to confirm that the sale of Parsons Brinckerhoff is proceeding. However, the newspaper reports that Balfour is under increasing pressure to convince its shareholders that it can survive without a tie-up with Carillion.
Shareholders in Balfour, including Fidelity Investments, are understood to believe the talks between the two should resume, said The Times. That pressure is then likely to intensify with Balfour expected to post a fall in first-half profits on the back of continued issues in its UK construction arm.
The proposed merger between the two broke down on July 31 over Carillion's demands that Balfour halt the sale of the Parsons Brinckerhoff business.
http://www.thetimes.co.uk/tto/business/industries/construction-property/article4172379.ece
By Sam Unsted; [email protected]; @SamUAtAlliance
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