Carillion's cash and shares bid on Monday of £5.70 per ordinary share was rejected today after the board decided that it "materially undervalues the company, particularly in light of the company's strong recent results; the expected value from the demerger; and the low implied premium".
The approach was the second from Carillion in four months after an earlier approach in August of £5.60 per ordinary share was also rejected.
In response to the announcement by Alfred McAlpine, Carillion confirmed that it has approached the board of Alfred McAlpine with a view to entering into discussions about a possible offer.
It said that "it believes that Alfred McAlpine would represent an attractive acquisition and that a combination of the two companies would present an excellent strategic fit, creating a leading position in support services and integrated solutions and generating an opportunity to extract significant cost savings".
Carillion said that it "noted that the board of Alfred McAlpine has today rejected this approach but that it will continue to evaluate all strategic opportunities, including Alfred McAlpine".
Alfred McAlpine said that the restructuring of its business continues to make good progress and the demerger is on schedule for completion during Spring 2008.