UK contractor crisis leaves lasting scars

Carillion

28/05/2019 15:31

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Aimee Donnellan
    LONDON, May 28 (Reuters Breakingviews) - Galliford Try
rebuffed Bovis’ $1.3 bln bid for its housebuilding unit. The
offer left behind a challenged construction business, that could
struggle to access capital. After the collapse of Carillion,
investor aversion will force public contractors to shrink, or
merge. 
    
    Full view will be published shortly.
    On Twitter https://twitter.com/aimeedonnellan
    
    CONTEXT NEWS
    - UK housebuilder Galliford Try on May 26 rejected a 1.1
billion pound offer from Bovis Homes Group for its housebuilding
unit, saying it was not in the interest of shareholders.
    - Bovis had offered to buy the Linden Homes and Partnerships
& Regeneration businesses in exchange for new Bovis shares worth
950 million pounds, and the assumption of 100 million pounds in
debt. Bovis said in a statement on May 28 that negotiations had
broken down. 
    - Shares in Galliford shares were up 2% at 551 pence by 1126
GMT on May 28. Shares in Bovis were unchanged. 
    - For previous columns by the author, Reuters customers can
click on  DONNELLAN/ 
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Bovis Homes no longer in talks of Galliford units         
 urn:newsml:reuters.com:*:nL4N2341FR
Galliford Try statement    https://otp.tools.investis.com/clients/uk/galliford/rns/regulatory-story.aspx?cid=793&newsid=1270489
BREAKINGVIEWS-UK outsourcer debt plan tests private sector model
    urn:newsml:reuters.com:*:nL8N1YF1UL
BREAKINGVIEWS-Living wills put fresh nail in outsourcer coffin  
  urn:newsml:reuters.com:*:nL8N1Y21X0
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Neil Unmack, Bob Cervi and Karen Kwok)
 ((Aimee.Donnellan@thomsonreuters.com; Reuters Messaging:
Aimee.Donnellan.thomsonreuters.com@reuters.net))