McAlpine's board has agreed to recommend Carillion's offer

Carillion has reached agreement on a proposed takeover offer for Alfred McAlpine, in a move that would make the company the UK’s second largest contractor.

The firm announced today that it has been granted access to Alfred McAlpine’s books to conduct a due diligence process. If Carillion then decides to table its offer formally, McAlpine’s board has agreed to give it unanimous recommendation.

The proposal values McAlpine shares at 585p, lower than the City’s estimated asking price of 600p.