AMEC is expected to write off more than £100 million from its books as part of a strategic review this week, it has been widely reported today.
The UK construction and engineering giant may also split itself in two following a board meeting scheduled for the middle of this week to discuss a year-long strategic review, which is rumoured to have revealed potential liabilities of £400m.
The write-off would be the firm's third, the Daily Telegraph newspaper said.
AMEC is responsible for projects like Heathrow’s new Terminal Five and the Channel Tunnel rail link, but could be divided into two separate companies, speculated the Sunday Times.
The first, which will keep the company name, will comprise its energy and process-management operations. The second, which could potentially be spun off through a trade sale or float, is to include private-finance initiative projects and its infrastructure business, building road, rail and port schemes.
AMEC is also refusing to accept a bid tendered last month from private equity firms First Reserve and Texas Pacific for its ailing construction arm. But industry watchers have speculated that the recent review may prompt shareholders to look twice at any increased offer on the 450 pence-per-share deal on the table.
Unnamed sources are reported to have said chief executive Samir Brikho was also expected to announce a cost-cutting plan on Friday, when he sets out a restructuring plan. He took over from former long-serving chief Sir Peter Mason last year, who initiated the review.
Brikho has completed the review, having been a veteran executive at the Swiss-Swedish engineering group, ABB.
No comment was available from AMEC.
But analysts have questioned whether a split or restructure could save the AMEC name. Its energy business is well positioned to win UK nuclear clean-up contracts make it attractive to a range of potential suitors.