Construction and support services company, Alfred McAlpine, has rejected a second multi-million pound bid from its rival Carillion.

McAlpine has hit out at the offer, which it believes seriously undervalues the 8,500 employee strong company. The offer valued its share price at 570p each, but the board of the PLC has snubbed this estimate citing its recent strong results and expected share price hike from a planned demerger.

A spokesperson for the board said: “The Board of Alfred McAlpine believed that this materially undervalued the company and therefore did not progress discussions with Carillion.

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"The Board of Alfred McAlpine, which is being advised by JPMorgan Cazenove and Tricorn Partners, remains convinced of the potential for significant value creation for shareholders from its current strategy.”

The offer follows the original approach in August this year by Carillion who employ over 50,000 people, then offering £543 million for the construction company who in 2005 recorded revenues of over £1,123 million.

Today, McAlpine is presently sitting with a 541p share price, up 3p since yesterday. But the board are confident the offer is not enough and reassured its investors that its JPMorgan Cazenove advisors are protecting the company’s interests.

Speculation of a takeover has been growing for some time since the plans for the demerger of the company under which it plans to spin off its business services unit emerged, and some shadowy accounting errors of one of its subsidiaries last February.

However, a spokesperson for Carrillion has said: “Carillion notes that the Board of Alfred McAlpine has today rejected this approach. Carillion will continue to evaluate all strategic opportunities, including Alfred McAlpine.”

(DW/SP)