German contractor Bilfinger Berger has withdrawn its bid for the PFI and facilities management arm of failed contractor Ballast, leaving outsourcing specialist Mapeley as the clear frontrunner
Bilfinger Berger's German parent ordered its UK arm to withdraw its offer for Ballast Services on Monday, on the grounds that the deal was too small to add value to its business.

It had appeared that the firm was on the verge of striking a deal for about 拢2m 鈥� three months ago, it was valued at nearly 拢11m.

Bilfinger Berger had been considering a bid for Ballast Services for 18 months and was one of several parties to bid between 拢7m and 拢11m for the arm in August.

Ballast's Dutch parent, Ballast Nedam, declined the offers but has since withdrawn financial support for its UK subsidiary, which is now in administration. For the past three weeks, administrator Deloitte & Touche has been attempting to sell off Ballast piecemeal.

It is understood that at least one other bid of 拢1m for the 100-strong PFI and FM arm has been submitted. But Mapeley is the leading candidate, with an offer of between 拢1m and 拢2m. This is understood to be the result of several reductions in its offer price, as it looks to buy one of the few profitable parts of Ballast.

It鈥檚 amazing. Ballast was mobilised for Bilfinger Berger 鈥� Now it鈥檚 back to Mapeley

Source close to Ballast

A source close to Ballast said: "It's amazing. Ballast was mobilised for Bilfinger Berger on Saturday, Sunday and Monday. It was a complete change of mind. Now it's back to Mapeley."

The source warned that Ballast Services was running out of time to find a buyer, as clients were unlikely to be attracted to a company in protracted administration.

Ballast Services has lost two senior staff, one of whom has left to set up his own firm, the other has moved to one of its PFI consortium partners.

Deloitte & Touche had hoped to have a deal in place by the end of last week, and a source at the administrator confirmed that it still believed a deal could be struck by today.

The administrator is understood to be on the verge of selling between five and 10 contracts that belong to Ballast's southern construction division. It is discussing change of ownership clauses on these projects with contractor Botes.