(Reuters) - Balfour Beatty Plc (L:BALF) will hand over the reins of the British construction group on Wednesday to the chief executive of defence research firm Qinetiq Group Plc (L:QQ), Sky News said.
Leo Quinn, chief executive of Qinetiq, which was spun out of the Ministry of Defence a decade ago, is set to become the new boss of Balfour Beatty. (http://bit.ly/1vsGGx2)
Balfour Executive Chairman Steve Marshall will make way for a successor after a new CEO is appointed, Sky News said.
The news came just weeks after Balfour Beatty rejected a takeover offer from its rival Carillion PLC (L:CLLN).
Though most of the shareholders supported the idea of merger with Carillion, the talks between the companies soured, without leading to an agreement, the Sky News said.
Balfour Beatty, which has been grappling with losses, hopes to turn its fortune with Quinn's appointment, Sky News said.
It is still not clear whether Qinetiq would announce a replacement for Quinn immediately.
Balfour Beatty and Qinetiq could not be reached immediately for comment outside regular business hours.
(Reporting by Rishika Sadam in Bangalore; Editing by Lisa Shumaker)