For sale sign at Laing

Laing has said it may sell its construction operations, which recently declared losses of £26 million, in a move that may signal the break up of the family-dominated construction group.

Group finance director, James Armstrong, who has taken over as chairman of contracting, told CJ: "There is a lot of restructuring in the air in the construction sector. We intend to be in there to see what benefits we can get for the shareholders of Laing and the staff of Laing.

"We are always interested to have discussions with others about how we might manage our construction interests better."

Armstrong stressed that Laing "will not be going to the shareholders for a rights issue to fund a take-over." Laing has already said that it may float off the housing division within two years. Laing Homes is its biggest profit earner, and a key part of the group. Armstrong made his latest comments in direct response to suggestions that Sir Martin Laing, with no family successor in view, is now considering the break up of the family construction group.

Swedish construction giant Skanska is considered a potential purchaser for Laing's construction interests. It has a goal of achieving a "dominant" position in the UK and is a major shareholder in Costain. Bouygues is also actively looking to expand in this country through PFI hospitals - an area in which Laing is very strong. Armstrong said he doubted whether European suitors were willing to put a realistic value on the company.

However, there may be interest from UK firms, too. The strategy director at one top 10 company told CJ: "This is very interesting news. I shall watch how things develop. But the whole question is how you place a sensible price on a contracting business."