Opinion: UK Market M&A, Earnings and News

THE WEEK: Hostile M&A, lacklustre earnings and new contract wins have dominated this week's UK stock market moves

Holly Cook 15 August, 2014 | 11:41AM
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Time is Running Out

When you read next week’s column you will probably know whether Carillion (CLLN) is to make a hostile bid for construction rival Balfour Beatty (BBY). An amicable merger is off the table. If you are a Carillion shareholder, hope it falls through. The potential benefits of a bid all fall to Balfour shareholders like myself, since Carillion will have to pay an attractive bid premium to win support.

At the moment Balfour shareholders have the worst of both worlds. No bid, and the pointless sale of the group’s profitable and cash generative Parsons Brinckerhoff subsidiary, with the proceeds being handed back to shareholders instead of being invested in the business.

I expect a bid to emerge by next Friday’s deadline, though I am far from certain. I hope I am right.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Admiral Group PLC2,991.00 GBP0.00Rating
Balfour Beatty PLC245.00 GBP0.00
Carillion PLC14.20 GBP0.00

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites