McAlpine rejects Carillion takeover

Source: Stock Market Digital

Date :17/10/2007 10:28:20

Construction and support services firm Alfred McAlpine has rejected a £584 million takeover approach from rival Carillion.

The London-based firm rejected the 570 pence a share proposal from Carillion this week as "materially undervaluing" the company.

The group also revealed that it rejected a previous indicative offer of £543 million from Carillion in August.

Wider review

After completing an investigation into accounting irregularities in its Slate business early this year, McAlpine reported a 27 percent rise in half-year underlying pretax profit, in August.

The slate operation is now up for sale as part of a wider review of the group which will also see it dispose of its stakes in Private Finance Initiative projects, as well as splitting up its support services and construction businesses.

In an update, McAlpine said it was making solid progress on the restructuring and had received a "substantial level of interest" from trade and financial buyers over its sale plans.

The latest acquisition move from Wolverhampton-based Carillion comes after it bought another major rival, Mowlem, for £313 million in February 2006.

October 17 2007

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