Balfour Beatty has terminated talks with Carillion regarding a possible merger of the two firms.

In a statement Balfour Beatty said: "The termination of discussions follows Carillion's wholly unexpected decision to only progress the possible merger in the event that Parsons Brinckerhoff remained part of the potential combined entity.

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"This change is contrary to the basis upon which the Balfour Beatty board agreed to engage in preliminary discussions.

"It is also contrary to the joint announcement released on 24 July, which confirmed that the sale of Parsons Brinckerhoff would be unaffected by the merger discussions and also a presentation to Balfour Beatty's Board by Carillion on 28 July."

It was agreed following discussions that the sale of Parsons Brinckerhoff would not be effected by the merger.

(CD/JP)