WITH the disposal yesterday of Lilley's core Scottish civil

engineering company, joint receiver Ian Powell was able to claim that

the heart of the group had been sold. Between 80 and 100 jobs were lost

in the process. The buyer was Lonrho subsidiary Sunley Turriff Holdings.

Working well into the night, the management buy-out team bidding for

MDW construction, led by managing director Bill Shearer, looked set to

win. Clients have come firmly behind the MBO and the deal should be

announced today.

Negotiations to sell other companies in the group continued at a

hectic pace, though the only deals announced were the sale of contracts,

with Kier Group active purchasers.

The company sold was Lilley Construction (Scotland), which formed the

biggest part of the Glasgow-based operations and employed 400 people.

Established back in 1917, it had turnover of #58m in the last accounts

and made #1.6m profit.

Run by managing director Ken McLelland it had weathered the group's

difficulties well, with contracts in hand worth over #20m. No price was

disclosed but last night Sunley Turriff director Tony Dillnutt denied

that it had been a giveaway sale.

''From the receivers' point of view they must move quickly, because

clients take the work away otherwise,'' he said. ''They have to work

within a tight programme or the values erode quite considerably; another

week and perhaps there would not have been anything to buy quite

honestly.''

Mr Dillnutt claimed they had felt aware of bidding against intense

competition and were ''more than happy'' with the purchase, because they

were keen to move into Scotland and civil engineering generally.

It is understood that about 300 employees have moved over, with the

company likely to trade as Lilley Construction from part of the group's

existing premises. Negotiations to retain existing contracts and

reinstate tenders began at once.

Sunley has been growing steadily, with encouragement from its Lonrho

parent and took over the assets of Turriff Corporation over a year ago.

Chief executive Nigel Linstead commented: ''The Lilley acquisition

provides a strategic move into civil engineering and into Scotland. We

intend to develop the business in its existing markets and to build on

the good name of Lilley.''

The Bedfordshire-based Kier Group, which has a base in Glasgow, has

landed the rights to contracts and ''certain business assets'' including

the trading names of both Eden Construction in Carlisle and Henry Jones

in Hampshire. Effectively this leaves the receiver with the rumps of

both businesses.

Their contracts were significant, with Eden well established in

North-west England and having an #18m order book. It is not known what

contract rights were sold to Kier, which immediately got to work

negotiating transfers. The Henry Jones business held #11m in

construction and maintenance contracts.

One of the hardest tasks looks to be in disposing of Lilley's

construction companies in South-east England, which as might be expected

have no great order book attractions.