British contractors' merger talks derailed over U.S. subsidiary Parsons Brinkerhoff
- Merger talks between British contractors Balfour Beatty and Carillion crashed Thursday into a dispute about Balfour Beatty's American subsidiary, Parsons Brinkerhoff.
- Carillion said its analysis of how a merged entity could work showed that Parsons' earnings "stability and dependability" would be needed.
- Balfour Beatty had said before the merger talks were disclosed that it is taking bids for Parsons and that Carillion's position was "contrary to the basis upon which the Balfour Beatty board agreed to engage in preliminary discussions."
The two companies' comments suggest who would be buying whom if a deal can be worked out. Carillion said it would keep working the numbers to see if it would make an offer to Balfour Beatty anyway. Balfour Beatty said it was planning to move along on its own.
- The New York Times/Dealbook British Construction Giant Balfour Beatty Calls Off Merger Talks With Rival Carillion