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UK firms ignored in Ballast sell-off
10:57 09 Aug 2002
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by John Leitch
Three continental contractors are reported to be showing an interest in acquiring Ballast, with its PFI division being seen as "the jewel in the crown".
The trio is thought to be HBG, Bilfinger and Berger and a German construction group. Potential UK buyers are being made to feel unwelcome. One domestic would-be buyer said on Monday: "We're being ignored."
Focusing on a sale to a continental-only player can be a dangerous strategy. When the John Laing group put its Laing Construction division on the market two years ago, at an asking price of £100m, only continental players were invited to bid. But 12 months later, and after injecting £60m as a "dowry" to boost working capital, John Laing was grateful to Ray O'Rourke, a domestic player with a keen appetite for growth, for making a bid of just £1.
Ballast Nedam's disposals team is headed by Geert Wirken. The group's finance director is one of the other three on the team. Phillip Cooper, appointed managing director of Ballast six months ago following the hasty departure of Bob Heathfield, is not on the disposals team.
A Ballast spokesman said: "Cooper's job is to run Ballast. It's up to Ballast Nedam to sort out its subsidiaries, including the transfer into new ownership. Ballast must now run as a strong concern and Cooper's attention is 100% focused on that."
It has been suggested that Cooper is not on the disposals team because it leaves him free to lead a management buy-out. The spokesman played down the parent group's interest in agreeing to an MBO. An outside source said: "It would be hard. There was a £32m loss in six months and that won't appeal to venture capitalist backers."
The Ballast spokesman said the media blackout will be lifted "when we have got all our ducks in a row". He explained that "we are moving to our own agenda" and would not offer a timetable.
A source commented: "It's more likely that Ballast Nedam's expectation is greater than what can be anticipated given the losses declared and the losses still to come."
Three continental contractors are reported to be showing an interest in acquiring Ballast, with its PFI division being seen as "the jewel in the crown".
The trio is thought to be HBG, Bilfinger and Berger and a German construction group. Potential UK buyers are being made to feel unwelcome. One domestic would-be buyer said on Monday: "We're being ignored."
Focusing on a sale to a continental-only player can be a dangerous strategy. When the John Laing group put its Laing Construction division on the market two years ago, at an asking price of £100m, only continental players were invited to bid. But 12 months later, and after injecting £60m as a "dowry" to boost working capital, John Laing was grateful to Ray O'Rourke, a domestic player with a keen appetite for growth, for making a bid of just £1.
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Ballast Nedam's disposals team is headed by Geert Wirken. The group's finance director is one of the other three on the team. Phillip Cooper, appointed managing director of Ballast six months ago following the hasty departure of Bob Heathfield, is not on the disposals team.
A Ballast spokesman said: "Cooper's job is to run Ballast. It's up to Ballast Nedam to sort out its subsidiaries, including the transfer into new ownership. Ballast must now run as a strong concern and Cooper's attention is 100% focused on that."
It has been suggested that Cooper is not on the disposals team because it leaves him free to lead a management buy-out. The spokesman played down the parent group's interest in agreeing to an MBO. An outside source said: "It would be hard. There was a £32m loss in six months and that won't appeal to venture capitalist backers."
The Ballast spokesman said the media blackout will be lifted "when we have got all our ducks in a row". He explained that "we are moving to our own agenda" and would not offer a timetable.
A source commented: "It's more likely that Ballast Nedam's expectation is greater than what can be anticipated given the losses declared and the losses still to come."
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