Published 63 days ago
Hello Share Twiddlers. Continuing my theme that companies which build houses should do jolly well out of the various election promises to stimulate house building, I offer for your critical perusal another lot which services the building industry.
Published 848 days ago
I was somewhat surprised to see the share price of Balfour Beatty (BBY) rise significantly off of the back of its final results yesterday. The UK based construction company had already issued several profit warnings during 2014, so it probably came as no real surprise to investors that it reported a £59 million loss for the year ending December 31 2014.
Published 1065 days ago
Carillion plc (CLLN), “following discussions with Balfour Beatty's major shareholders”, has offered improved prospective merger terms in an attempt to get the board of Balfour Beatty (BBY) to re-engage in discussions and agree to get a current 5pm Thursday deadline for Carillion to announce a firm intention or not to undertake a transaction extended. The following updates with Balfour having now rejected this.
Published 1073 days ago
Having previously concluded on the Balfour Beatty (BBY) and Carillion (CLLN) merger saga that ‘the potential synergies from a merger appeal to many investors, but with uncertainty as to whether a transaction can be resurrected and ahead of the results announcements later this month, it is a watching brief here for now’, the following updates with Balfour having now affirmed that it has rejected a revised proposal from Carillion and “lost confidence in the likely delivery of a successful transaction”. Carillion meanwhile is to “give further consideration to its position and will make a further announcement in due course”.
Published 1081 days ago
Having announced “preliminary discussions in relation to a possible merger” with Carillion PLC (CLLN) on 25th July, Balfour Beatty (BBY) has now announced that it has terminated the discussions after “Carillion's wholly unexpected decision to only progress the possible merger in the event that (US-headquartered engineering consultancy business) Parsons Brinckerhoff remained part of the potential combined entity”. Below I analyse this strange twist of events, after the prospective merger was originally described by the companies as having “the potential to create a market leading services, investments, and construction business of considerable depth and scale”
Published 1155 days ago
Profit warnings are never good for a company, but they also often cause an over-reaction and give investors a chance to buy at a bargain price. This may well prove to be the case with infrastructure services company Balfour Beatty (BBY). The company issued just such a warning a couple of weeks back and saw its share price drop from around 285p, before settling at the current level of 223p. Is now the time to swoop on this weakness?