Carillion improves bid for Balfour Beatty ahead of deadline

|About: Carillion Plc (CIOIF)|By:, SA News Editor

British construction and services company Carillion (OTC:CIOIF) says it will raise its takeover offer for Balfour Beatty (OTC:BAFBF) to £2.1B ($3.5B) after meeting with major shareholders of its rival.

The new proposal comes just ahead of a Thursday deadline, when Carillion would have to make a final offer for the company or walk away for up to six months under British takeover rules.

The offer would give Balfour Beatty investors ~58% of the new company and a cash dividend of 8.5 pence/share, a 36% premium to weighted average share price before the talks were announced; a previous offer would have given Balfour shareholders a 56.5% stake.