Skanska is being tipped to buy Kvaerner鈥檚 construction arm as speculation about the Swedish giant鈥檚 UK shopping list continues.
Analysts believe Kvaerner鈥檚 construction division could be a target because Kvaerner has been concentrating its efforts on its oil business. It is currently bidding for Norwegian oil and gas rival Aker Maritime.
Kvaerner鈥檚 拢334m bid for Aker follows Aker鈥檚 purchase of a 26% stake in Kvaerner last month. The deal, which would create the world鈥檚 third-largest oil and gas services firm, was last week rebuffed by Aker鈥檚 principal shareholder, the Norwegian entrepreneur Kjell Inge Rokke.
Skanska said in May that it planned to make a major acquisition in the UK before the end of 2000. The firm has already been linked with bids for Carillion, Balfour Beatty and Amec.
One analyst said it would get a keener price for Kvaerner鈥檚 construction arm than for the other UK targets suggested. He said: 鈥淪kanska is going to get a much more attractive price if it鈥檚 dealing with a vendor that wants a clean break.鈥�
The analyst said Skanska would be particularly interested in Kvaerner鈥檚 construction and civil engineering operations, as well as overseas subsidiaries such as Hong Kong-based Gammon.
Another analyst agreed that they were a good match. He said: 鈥淏oth firms speak the same language in business terms.鈥�
Analysts are sceptical about bids for Amec and Balfour Beatty, both of whose shares have recovered strongly after slumps last year, particularly since the announcement of the chancellor鈥檚 Comprehensive Spending Review.
One said: 鈥淚 don鈥檛 think it鈥檚 Amec. They are highly regarded now and you would have to pay a very full price for them.鈥�
Another said: 鈥淚f they really thought the business fitted well, why didn鈥檛 they bid for it when its share price was cheaper?鈥�
Peter Wollin, Skanska鈥檚 head of investor relations, reiterated the firm鈥檚 interest in the UK but refused to say which firms were being targeted.
He said: 鈥淲e are constantly looking into a market which we are interested in. I do not really know when [a buy] is going to happen.鈥�
A Kvaerner spokesperson said construction was one of three core activities in the group and refused to comment on market speculation.
Chief executive Keith Clarke was quoted last weekend as doubting the possibilities of a management buyout, flotation or merger as viable future options for the construction arm if it did split from Kvaerner.
