Miller in talks with potential buyers

Family members holding around 60% of Miller Group's shares are in talks with a handful of potential buyers for the Scottish hybrid's housebuilding and contracting operations.

Talks have involved trade rivals and financial buyers, with less than ten parties believed to have shown an interest.

Chief executive Keith Miller is the only family member on the group's board. The board is determined to resist any bid and has issued a defiant statement saying that "Miller is not for sale".

The only two major trade groups that match Miller's business model are Galliford Try and Kier. Galliford chief executive Greg Fitzgerald is viewed by the City as one of the industry's keenest forces in the drive for acquisitions.

An outside bidder would have to stump up around £1.2bn in order to take on Miller's assets as well as its £650m of debt.

Keith Miller has transformed the group into a market leader with results showing 13 years of profitable growth.

He holds 17% of Miller's shares while his family account for a further 8%. The group's employees have 11%.

The non-active family members now looking at their options have formed the Aligned Shareholder Group (ASG) which has appointed accountant Ernst & Young to undertake "a strategic review to evaluate options in relation to their shareholding".

They report that a disposal is a possibility.