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Westhouse Securities warned over Balfour Beatty: "We have withdrawn our target price for Balfour Beatty as we believe the uncertainty caused by the latest profit warning means the stock is impossible to value at present. We fear the problem contracts at the comparatively tiny Engineering Services unit within UK Construction are a potential black hole threatening the financial health of the group, as contagion starts to spread to other parts of UK Construction, estimated average net debt has escalated at an alarming pace and we think at least one more profit warning could follow."
The deal dodger’s curse: Don’t mention Mouchel. Following a fifth profits warning, shares in Balfour Beatty fell 27% below the implied price at which the support services group refused to merge with Carillion. Mouchel, a motorways maintenance group turned down three takeover offers at successively lower prices in 2010 and 2011, to shareholders’ cost. Most mergers are really takeovers, because one of the partners is dominant. Most takeovers result in the purchaser transferring value from its own shareholders to investors in the target. Bidders generally overpay. Boards thus have little wriggle room to reject a cash bid pitched at a decent premium to the undisturbed price of the shares. The picture is fuzzier when the merger currency includes shares in the combined business. A preferential exchange ratio for investors in the weaker partner may be required to tilt the advantage towards its investors. AstraZeneca is a typical deal-dodger. Its stock is 20% below the last price offered by Pfizer before the U.S. group abandoned attempts to strike a deal with its U.K. rival. Similarly, shares in Michael Page are only 5.2% above two bids of about 400p from Switzerland’s Adecco in 2008. But the humbling of the Balfour board has been swift and salutary.
Balfour Beatty in fifth profit warning Executive chairman to go as shares fall 21%
The 4 largest trades of the day for BBY took place between 1401-1435 hrs, when in cumuli 3 million got dumped...175.9 to the two largest sales at 182.1 ...1.262 million and 800k volumes.
Completely agree that the business should be locking into profitable work during busy period. Yes, its' competitive but don't do fi it's not likey to be profitable. Busy fools. I am now certain the BOD don't know what they are doing what with the PB deal, CLLN and now this. The special dividend should be scrapped as it's only 67% of the share fall and may not even cover the new losses. Keep it and strengthen the Balance Sheet + new CEO / FD please.. How many more of these large companies are being badly run and producing bad results? Not enough managers with financial commitment unfortunately. That's PLC's for you!
Probably you will win all the contracts in the world, because you are pricing too cheap, Then after a few months time this could be classified as a BAD contract, who knows? Its not the point how many contracts we win,, Its all about what is the price margin,, how we calculated the risks,,, It does not seems the BOD is effectively doing their home work properly. The order book is very strong,, what is the point? if we don't make any return out of it. Any idiot can see how the cost of build is increasing in years. The strategy of BBY construction arm is a pure nonsense. Actually its time to make money for construction companies,,, not to loose.
This was on my watchlist for the divi, although that looks under threat now. I also hold Clln and wondered what attracted then to buy/merge with them. It appears the PB bit was what they were after in hindsight. Clln management seem good and I thought that they would be able to integrate this and make a go of it. Would they likely return? Maybe not. I dont know how shareholders here feel as it seems your were bribed with your own money for a special divi (was it 29p) but the SP fall is greater. A couple of the BoD have fallen on their sword but that is little comfort to holders. I missed the conf call but might have a listen tomorrow when its online. Maybe they should go back cap in hand to Clln management but I doubt that would help shareholders in the short term and I suspect that Clln would want to be more than "opportunistic" I hope the current board get a good grilling at the meeting from the disgruntled holders
Erm, no. It will find its bouancy around 170-180 mark and then it will "ONLY" rise up "IF" there are any takeover rumours or all of the BOD are sacked.
29-Sep-14 Westhouse Securities
http://www.theguardian.com/business/2014/sep/29/balfour-beatty-shares-plunge-25-percent
http://www.ft.com/cms/s/0/8fdcc0c4-479f-11e4-be7b-00144feab7de.html
Can see this going to 150p... sell while you still can.
With improved construction and economy there is no reason for this profit fall,,, I think its clearly on the wrong hands,,,, Look at the other construction companies growth, and where are we now? Its really worrying for share holders, Its time to change BOD. We are performing worse than the AIM shares. If the directors know what they doing it wouldn't happened. Bunch of idiots running the company. Should have at least accepted the carrilion offer.
At 25% down, it's a total knockout bargain. I'm totally in today, I've just bought in and going to ride the volatile wave. I can see this board being interesting again. Carillion can buy this company at dirt cheap now after the re-bidding restriction time has lapsed.
Sold at 260 bought in at 222 now this....just can't believe what's happening to my shares just lately.....
BBY 173.59 -51.31 ........looks like a buying opportunity again.
Brazilian giant stalks Tarmac as £5 billion bidding war begins: Votorantim, one of Latin America’s largest conglomerates, is understood to be planning a bid for a package of businesses being offloaded by Holcim and Lafarge, the Swiss and French cement giants, in an effort to seal a £32 billion mega-merger.
Not much happening here until January trading statement. Let's hope that the slimmed business will be able to show us an enhanced performance without the PB holding.. :)
A very good price for PB. Balfour shareholders should be delighted. However, the company remains up for grabs: Balfour Beatty is now a one of the most "obvious" targets in the construction & support industry. Indeed, the whole sector is ripe for consolidation. Just look at the Times equity prices columns and one cannot help but notice the sheer length of the two listings (Construction & Property and Professional & Support Services). Combined, and the cross-overs are only too evident, this would be the longest column in the paper, easily exceeding Natural Resources. More on this subject: http://pinkerspost.com/?p=312
Somebody kicked off a long to 252 ...volume 58k
you say we are getting 29p per share ,thats really good news do we get it the sane time as the div ,and will the share drop as it does when it goes ex div or is thie different?i'm holding a few good div but interest on money to buy the shares more than wipes tht out ,still i have traded these a few times lately for smaal profits imo this share will either rise on performance or another party will move in.
Thought the price might have reached at least into the £2.50s first thing so I think this is a very disappointing reaction at the moment. Not sure about the merger thing being back on as that was off apparently because PB was being sold off. Maybe shouldn't be commenting on this as I no longer hold but that hasn't stopped a few others. At least holders are going to get something back from this asset disposal. A one off return in exchange for an asset they didn't think was working for them but was desired by others. Let's see if it can go higher on the lead up to the payout.