P&O in talks on pounds 350m sale of Bovis
Wednesday 16 September 1998
Sources closed to the company confirmed yesterday that the two parties were in "top-level" talks on the future of Bovis. They said Hochtief was the front-runner in the race for the pounds 1.8bn-turnover business, but warned that a deal was not imminent and could take up to two months to be completed.
The sources said that there were no other groups in the running for Bovis, but admitted that the company had had talks in the past with the rival construction group John Laing about a possible joint venture.
Last week Sir Martin Laing, chairman of John Laing, said there were "no talks whatsoever" between the two companies at the moment. Some industry sources have speculated that Bovis could strike a joint venture deal with the project manager WS Atkins, but both companies have denied this.
Last year, Bovis Construction had a turnover of pounds 1.8bn and posted a 10.1 per cent increase in operating profits to pounds 16.3m. In the first half of the current year Bovis made a profit of pounds 9.6m. Unlike traditional contractors, Bovis specialises in construction management - co-ordinating the work of a number of contractors on building projects.
Sir Frank Lampl, Bovis chairman, is keen to strike a deal with a partner in order to increase the range of services Bovis can offer. He wants to add specific engineering skills which could be used to win lucrative contracts among petrochemicals and pharmaceuticals customers.
A tie-up with Hochtief, one of Germany's leading construction groups, would give Bovis a foothold in the German market and the prospect of a presence in the US.
For P&O, the sale of Bovis would complete its withdrawal from non-transport activities started last year with the pounds 226m flotation of the house-builder Bovis Homes.
- 2 Italian police 'reveal' what Jesus looked like as a young boy
- 3 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
Italian police 'reveal' what Jesus looked like as a young boy
Who should I vote for? The Independent quiz matches best political party for undecided voters ahead of the general election
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
Syria's 'circle of hell': Aleppo residents describe children without heads, streets filled with blood and injuries never before witnessed by surgeons
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: Clegg warns of second election before Christmas without Lib Dems
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...