Contractor says any successful deal would be funded by a rights issue
Balfour Beatty has revealed it is in advanced discussions for a 鈥渟ignificant and complementary acquisition鈥�.
In a statement to the stock exchange the contractor said the deal would be substantially funded by a rights issue if it went ahead.
The firm said it was releasing the news following recent press speculation.
If the acquisition were to go ahead, said the company, it would 鈥渕aterially accelerate the fulfilment of its existing strategy鈥�.
The news follows rumours in the press that Balfour Beatty was readying a surprise rights issue of up to 拢350m to fund an acquisition.
Bankers at JP Morgan Cazenove and Hoare Govett, now a part of Royal Bank of Scotland, have been appointed to run the rights issue, according to the Telegraph, which said the issue is expected to be launched in days.
Balfour Beatty insisted there was no certainty that the acquisition would proceed, and said that a further announcement on the issue would be made at a later date.
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