Intria's 37% holding in Costain made safe

The uncertainty over one of Costain's major shareholders - four players hold a total of 81% of the group's shares - has eased.

It had been thought that having been hit by financial problems, Malaysian construction group Intria would be forced to off-load its 37% stake in Costain. However, with United Engineers stepping in and buying 45% of Intria's shares, the group is now back on its feet.

"It has solved Intria's survival problem," said John Campbell, Costain's finance director, adding that Intria's Penang Crossing project was now "earning a lot of money".

Costain's other major shareholders are Kharafi, the Kuwaiti contractor, with a 20% stake, along with Skanska and Raymond, both with 7%. Skanska paid £10m for its shareholding in October 1997. In the UK, Costain and Skanska work in joint venture. Overseas, Costain works either alone, with Skanska or with Arabia-based Raymond.

Costain's overseas involvements are tumbling and chief executive John Armitt would be pleased to see the former figure of 50% settle at just 10-15% of the group's total turnover.

However, it has recently been appointed project manager for two hotel contracts in Egypt worth a total of £40m and it has also won a £57m contract for the Kowloon Canton Railway Corporation.

The financial disputes in Hong Kong relating to the Tsing Ma Bridge and Landside projects still remain outstanding.