Builders face £50m bid rigging fine
The 112 builders accused by the Office of Fair Trading of rigging bids for contracts could face collective fines totalling £50m, analysts estimate.
Britain's two biggest construction groups, Balfour Beatty (up ¾p at 458¾p) and Carillion (down 5¼p at 363p), were named among 112 in the country's biggest ever cartel investigation into the industry.
Other stock market listed firms caught up in the OFT probe include Connaught (off 6½p at 388½p), Galliford Try, Henry Boot, Interserve, Kier (2p weaker at 1286p), Morgan Sindall, and Rok.
The competition watchdog has been looking into more than £3bn worth of tenders between 2004 and 2006.
It found evidence of bid rigging in thousands of them, and some companies are also accused of paying bungs to rivals to submit inflated bids. The OFT said the practice was 'endemic'.
The regulator can fine cartel members up to 10% of their worldwide turnover. Balfour has been co-operating with the probe, and will have any potential fines reduced as a result.
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