In a statement issued this morning it said:

Carillion notes the press comment speculating on the accounting treatment of its recent acquisition, Alfred McAlpine plc and wishes to clarify that the fair value exercise that it is currently undertaking in respect of the acquisition of Alfred McAlpine plc will have no impact on the Group’s total net assets, profits or cash flow.

As required by International Financial Reporting standards, Carillion will be including in the acquired balance sheet of Alfred McAlpine plc its assessment of the fair value of the net assets obtained with that business. Any differences between these fair values and the amounts at which the assets were recorded in the balance sheet of Alfred McAlpine plc are required to be treated as pre-acquisition adjustments and will have no impact on the Group’s total net assets, profits or cash flow.

Only post acquisition restructuring costs, previously announced at £30 million, are required to be deducted from Carillion's profits and net assets. Such amounts will be treated as “exceptional” charges and will have no impact on underlying results.

Carillion's preliminary assessment of these fair values will be provided in the pre-close update on trading scheduled for 30 June 2008. However, overall Carillion does not expect the outcome of the assessment of fair value adjustments to be materially different from its original expectations.