Former Kier National boss Graham Shennan could soon join Morgan Sindall's loss-making regional contracting business Bluestone.

Building understands that Shennan, who left Kier in May, has been offered a specially created role on the board of directors at Bluestone in an attempt to turn the division around.

John Morgan, executive chairman of Morgan Sindall, confirmed that he had approached Shennan. "Yes, we have spoken but we don't have anything conclusive yet; it's still early days in the talks," he said. "We speak to people all the time about various positions in the group, and that's what is happening here." He refused to say what role had been offered to Shennan but emphasised that Bluestone managing director Chris Saxton was still in charge.

An industry source said Shennan's appointment to Bluestone's board was a certainty. He said Shennan's expertise would be vital. "Bluestone needs a guy like Shennan in there, he has the experience and the talent to make a difference," he said.

Morgan Sindall wrote off £8m from the value of Bluestone contracts earlier this year. It has shaken up the division's regional structure and introduced the Bluestone brand in an attempt to raise performance.

Shennan would bring 25 years of contracting experience to Bluestone. Before he left Kier he was managing director of the group's major building and civil engineering projects division. He was replaced by the Kier National chairman John Dodds.

Before that, Shennan had been in charge of Kier's highly successful regional contracting arm. It is this expertise, in particular, that sources close to Morgan Sindall say Morgan is keen to tap.