Balfour Beatty has rejected a third takeover bid thought to be worth around £2bn from its rival Carillion.
The improved offer presented Balfour Beatty with a chance to snap up a 36% premium on its recent average share price.
Carillion had also offered Balfour Beatty more control of the combined entity, lifting its stake from 56.5% to 58.268%.
However, Balfour Beatty said that Carillion, once again, failed to address two major concerns.
The first is the ongoing dispute over Carillion's insistence that London-based Balfour Beatty should not sell its US consultancy division, Parsons Brinckeroff. Balfour reiterated that the deal will go ahead, previously stating it was at an "advanced" stage.
Secondly, Balfour is concerned over the risks of the deal, specifically "the strategy to significantly reduce the scale of the UK construction business when it is poised to benefit from a recovery in the market."
Although Balfour has now rejected three offers for a merger from Carillion, it has hinted that it could still be open to a potential deal.
"The board will ... remain open to strategic value creating opportunities across the group while it concentrates on the restoration of value to its shareholders," a statement from the board said.
"It will consider all such opportunities, and the risks associated with their execution, taking full account of the significant recovery potential within the Balfour Beatty business."
Balfour will not be seeking an extension on the Takeover Panel's "put up or shut up" deadline on Thursday, 21 August at 5PM. Carillion on the other hand said that it would look to prolong the deadline.