British construction company Carillion has said it has abandoned its pursuit of a merger with Balfour Beatty after Balfour rejected its advances for the third time.

Balfour said its board had unanimously decided that Carillion’s sweetened offer was not in the best interests of its shareholders and did not address its concerns over the sale of its US engineering business. The company said its turnaround strategy, centred on the sale of its US engineering business, was a better prospect for investors.

Carillion made its third offer yesterday, an all-share approach valuing its rival at £2.1 billion in its attempt to create a British construction giant with 80,000 staff around the world. Two analysts and an investor said they expected Balfour to open talks with Carillion, but the group said its board had rejected the offer. – (Reuters)