UK engineering and construction company Balfour Beatty is preparing a rights issue to fund what it calls a ÔÇ£significantÔÇØ acquisition.
In a statement, the company, one of the largest construction firms in the UK and the fifteenth largest in the world, said: ÔÇ£Balfour Beatty confirms that it is in advanced discussions regarding a significant and complementary acquisition which would materially accelerate the fulfilment of its existing strategyÔÇØ.
The London-based firm went on to say that any acquisition would be ÔÇ£substantiallyÔÇØ funded by a rights offering.
It is thought that the rights issue could be for as much as £350 million.
Balfour BeattyÔÇÖs current projects include the widening of the M25 motorway near London and the construction of the London Olympics Acquatic Centre in the east of the capital.
In August, the company announced a rise in its first-half operating profits of 30 per cent to £114 million and forecast good progress for the second half of the year, thanks to strong business in the US and a number of UK infrastructure contracts.
Balfour BeattyÔÇÖs statement went on to say that further announcements regarding the acquisition would be made ÔÇ£as and when appropriate.ÔÇØ
It is thought that bankers JP Morgan Cazenove and RBS Hoare Govett have been appointed to run the share sale.
In 2008, the company bought GMH Military Housing, a US-based military accommodation firm for £180 million. It also acquired UK contractor Dean & Dyball for £45 million.
Founded 100 years ago, it employs 30,000 people worldwide.
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