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Carillion not so diligent

CARILLION's due diligence during the £313 million acquisition of rival Mowlem was under the spotlight this week after the company announced an extra £90 million in write-downs on two Mowlem contracts.

A company source said: 'Obviously things were not thorough enough. We did all that was reasonable during due diligence, but the position deteriorated between then and the acquisition.' The loss-making jobs ? the £500 million Dublin Port Tunnel and the £95 million Exeter Schools PFI project ? have effectively added an extra £80 million to the cost of buying Mowlem.

Carillion has also written off another £30 million on businesses closed by Mowlem last year, but expects to make £40 million from the sale of non-core operations.