Skanska poised for Costain bid
Saturday 29 August 1998
John Armitt, Costain's chief executive, said that "there is a clearly a possibility" that Skanska may take a controlling stake in Costain. He added that the appointment of Anders C Karlsson, the president of Skanska Europe, as a non-executive director was " a good thing for the company" and helped to strengthen the relationship between the two groups.
Skanska, one of Sweden's largest construction companies, bought a 7.6 per cent stake in Costain last October, with an option to increase it to 40 per cent over the next two years. Skanska's moves depend on the fate of the 37.5 per cent Costain stake held by Malaysian contractor Intria, whose majority shareholder, Mekar Idaman, is in receivership.
The appointment came as Costain reported a sharp fall in its interim pretax losses to pounds 1m from pounds 5.4m a year ago. However, turnover was down 37 per cent to pounds 200.8m.
The contractor said that it was fighting hard to regain the credibility lost when its shares were suspended for a year in November 1996 amid a flurry of financial problems. Mr Armitt said: "There is much to do before Costain can claim a major turnaround but we are now moving in the right direction".
Since being readmitted to the list in November 1997, the shares had a poor run, falling from 46p to yesterday's close of 21.5p
Costain hit the news a few years ago as it fought a bitter battle against environmentalists led by Swampy over the construction of the Newbury bypass.
- 1 Kim Jong-un shows off airport designed by architect he likely had executed
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Why it matters 26 million people have changed their Facebook profile picture to a rainbow flag
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Fifty Shades of Grey author E.L James's Twitter Q&A didn't go exactly as planned
Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
Kim Jong-un shows off airport designed by architect he likely had executed
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
Ex-Scientologist Carmen Llwyelyn blasts 'cult' and her treatment after divorce with Jason Lee
Tunisian builder has been hailed a hero after knocking gunman to the ground with roof tiles
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
David Cameron struck double blow in his hopes to win Britain a new EU deal
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
iJobs Money & Business
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...