Balfour set for cash call

Balfour Beatty, the engineering, construction and services group, is set to launch a surprise rights issue of around £350m within days, City A.M. can confirm.

A team of bankers, including JP Morgan Cazenove and RBS Hoare Govett, have been appointed to work on the fundraising.

Balfour, which last month reported a 14 per cent rise in pre-tax profits to £108m, is expected to use the cash to finance acquisitions.

The company declined to comment.