BALFOUR BEATTY parent BICC this week announced plans to sell its entire cable manufacturing businesses and focus on contracting.
The deal struck with US cable firm General Cable Corporation is worth £275M and came after BICC rejected an increased £464M takeover bid from industrial conglomerate Wassall. The cable business sale is expected to be put to shareholders later this month.
If accepted, the sale will leave BICC with just Balfour Beatty's construction, engineering and maintenance businesses; Andover Controls, its computer systems installer; and Brand-Rex, the specialist computer network wiring business.
Following the sale BICC will be restructured into three divisions; engineering, construction and maintenance; Brand-Rex; and capital projects and developments. However, a BICC spokesman explained that this did not reflect how the businesses would operate and confirmed that, while senior management changes would be likely, Mike Welton would remain in charge of the Balfour Beatty construction businesses. He added that changing the plc's name to Balfour Beatty was being discussed.
(See Analysis page 12)