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May Gurney dropped from Norfolk highway services tendering process

Contractor May Gurney has failed to make the shortlist for Norfolk County Council’s highways services contract, signalling an end its 10-year reign as the council’s highways maintenance and construction works contractor.

The news has come as a blow to the Norfolk-based contractor, which is in the midst of a merger and potential bidding war after Costain last week announced a plan for an all-share merger with the firm that in turn sparked interest from contractor Kier.

The firm is set to appeal the council’s decision. The new contract will commence on 1 April 2014 and initially last for five years — it could be worth up to £780M.

May Gurney’s share price fell 10p to 235p following this afternoon’s news before staging a recovery to close at 242p.

“We are naturally disappointed with the County Council’s decision and have started a formal appeal process with them,” said the contractor in a statement. “We will provide an update on this in due course. In the meantime May Gurney remains fully committed to continuing to deliver a quality service under the terms of the current contract.”


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