Alfred McAlpine has spurned a £584m approach from Carillion which has left open the option of mounting a hostile bid.
McAlpine said it had rejected two approaches over the past three months, the second of which came on Monday at 570p a share. It said it would continue with its plans to sell its PFI portfolio and its slate division.
Carillion said it would now “evaluate all strategic opportunities, including Alfred McAlpine”. It said both companies “would present an excellent strategic fit”. Altium Securities thinks the price could reach about 600p a share if a bidding war emerges. It suggested Vinci, Hochtief and Balfour Beatty as possible rival suitors.
Carillion closed down 17p at 397.25p, McAlpine climbed 6p to 538p and Balfour Beatty fell 1p to 479.5p.
17/10/07 Financial Times 20, 44 Times 42, 47 Daily Telegraph B4, B6 Guardian 24 Independent 49, 50
