In the end Carillion had to up its bid by £16m, but it was enough to end the resistance of the Alfred McAlpine board to the takeover.
 
In a short statement issued by the board of McAlpine it confirmed it had accepted the deal of £5.85p per share,in cash and shares,  this was up 15p per share from the offer that it turned down last month and 25p per share hire than Carillion's first offer.
 
The statement said:
 
"The Boards of Carillion plc (“Carillion”) and Alfred McAlpine plc (“Alfred McAlpine”) are pleased to announce that they have reached agreement regarding a proposed offer by Carillion for Alfred McAlpine and that Carillion has been granted access for a limited period of due diligence on Alfred McAlpine. The revised proposal values each Alfred McAlpine ordinary share at 585 pence and comprises 25 per cent. cash consideration with the balance in new Carillion ordinary shares.

Subject to its detailed terms and conditions the Board of Alfred McAlpine has confirmed if such an offer were to be made it would receive its unanimous recommendation."

Carillion received non-binding letters of intent over 14.89 per cent of Alfred McAlpine’s issued share capital from Schroder Investment Management Limited and New Star Asset Management Limited to accept, if made, a possible offer by Carillion at a value of 585 pence for each ordinary Alfred McAlpine share. The letters will lapse if an announcement of a firm intention to make an offer is not released by 14 December, 2007. In addition, the letters will also cease to apply to shares which are disposed of by the holder. The letters of intent relate to 10,582,615 Alfred McAlpine shares held by Schroder Investment Management Limited (on their own behalf and on behalf of discretionary clients) and 4,681,590 Alfred McAlpine shares held by New Star Asset Management Limited.