Latest reactions to the OFT bid-rigging allegations from Balfour Beatty, Carillion, Galliford Try, Henry Boot, ISG, and Willmott Dixon
Morgan Ashurst plc (formerly Bluestone plc), has been provisionally found to have infringed UK Competition law by giving or receiving cover prices in respect of historic tenders. Morgan Ashurst plc has co-operated with the OFT's investigation under the OFT's leniency policy and, as a result, has been provisionally granted a reduction in any penalty which the OFT might ultimately impose.
Connaught was contacted by the OFT in 2007 in relation to a small number of tenders in one of its subsidiary companies dating back to 2000. The tenders represent a very small proportion of the bidding activity of the Group during that period.
As a result and subject to ongoing co-operation, the OFT has granted leniency to Balfour Beatty, thus reducing any fines which might ultimately be levied on Balfour Beatty or any of its operating businesses.
Carillion announced in March 2006 that the OFT had visited two Mowlem offices, shortly after the acquisition of Mowlem on 12 February 2006, and that it would fully co-operate with the OFT's investigation. The OFT's enquiries related to certain matters that arose prior to Carillion's acquisition of that business.
Subject to ongoing cooperation, the OFT has granted leniency to Carillion JM Limited, thus reducing any fine which might ultimately be levied.
The allegations against Willmott Dixon Construction concern six unsuccessful tenders with a combined value of under £30 million. There is no suggestion that any benefit accrued to the company in relation to any of these unsuccessful tenders.
Galliford Try was initially contacted by the OFT regarding 17 tenders submitted between 2000 and 2005 that represented a very small proportion of the bidding activity of its building division during that period.
The subsidiary of Henry Boot PLC mentioned in this Statement of Objections has fully co-operated with the OFT in its investigation and Henry Boot PLC has applied for leniency.
Shareholders were made aware of the OFT’s enquiries at Propencity Group Limited, which ISG acquired in 2006, in the annual report of that year. ISG and Propencity have cooperated fully with the OFT and the OFT has granted leniency to Propencity, thus reducing any fines that might ultimately be levied.
Pearce Construction (Midlands) Limited, a dormant company (since 2003) which was acquired by ISG as part of the Pearce Group, is also listed amongst the 112 firms cited by the OFT. With knowledge of the OFT investigation ISG secured, as part of the terms of the acquisition, indemnities against any potential financial liability that this company could incur from the outcome of this situation.
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