Construction firm Carillion is attempting to persuade rival Balfour Beatty to go-ahead with the takeover.

In a statement released by Carillion today, the firm said there is "powerful strategic logic" in a merger.

Balfour Beatty has already turned down two takeover proposals by Carillion, however the firm has until 21st August to make a final offer.

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Carillion said as a direct result of the merger, the cost-base of the combined group could be reduced by at least £175 million per annum by the end of 2016 and that earnings would consequently be significantly enhanced from that year.

Today, Carillion also reported a 3% increase in first-half underlying pretax profit to £75.9 million.

Carillion said its full-year targets for revenue growth remained unchanged "despite markets remaining challenging".

(CD/MH)