Morrison Knudsen Considers Merger Proposals

Morrison Knudsen Corp., searching for ways to avoid filing for bankruptcy protection, is considering tentative merger proposals from several parties, a company spokesman said.

Specifically, it is considering a potential merger offer from Jack Lemley, a former president of Morrison Knudsen’s construction group, and J.R. Simplot, a Boise billionaire, Morrison Knudsen spokesman Mark Armstrong said.

The offer involves merging Boise-based Morrison Knudsen with another publicly traded engineering and construction company, Armstrong said. Chief Executive Robert Tinstman is set to meet with Lemley next week to discuss the potential offer.

“Morrison Knudsen is not for sale, but we will entertain any serious offers that are presented to us,” Armstrong said.

A group of banks led by Mellon Bank Corp. granted Morrison Knudsen a $50-million bridge loan last month designed to keep the cash-strapped company operating until May 31. The company is already in default on $235 million in long-term loans that the banks can insist be paid back at any time.

Morrison Knudsen has said it will sell off several non-core assets to fund operations.