The Enquirer has seen a copy of a letter sent to staff by managing director Graham Shennan asking them to elect representatives to attend a meeting on 10 May, followed by a second on 14 May.

Shennan was appointed head of the rebranded Morgan Sindall construction operation last month following the decision to ditch the Ashurst and Est trading names

Divisions that have been asked to elect representatives include utility services, tunnelling services, infrastructure services and capital projects, as well as back-of-house sectors such as HR, IT and finance.

In the letter Shennan said: “The final stage of the re-structure is likely to be a transfer of the current operations of both the construction and infrastructure services divisions into a new company within the group towards the end of this year.”

In a second letter to staff Shennan also said he has had “very positive” feedback from clients including BAA and Network Rail about the merger.

He also revealed he had met with the boards of Morgan Ashurst and Morgan Est to go over Q1 reporting “to review budgets and ensure we are on track to meet our 2010 targets”.

The Enquirer has also learned the new management team is beginning to take shape with Martin Pitt appointed as commercial director. Martyn Shepherd is the new commercial director for contract services. Pitt was previously commercial director at Morgan Est.

Rebranding of the business, which will operate under the name Morgan Sindall, is due to take place throughout May and June.

A spokeswoman for Morgan Sindall said: “The purpose of the letter and the meeting on Monday is to inform all our staff in a consistent manner about the plans.

“This is not a job-cutting exercise. We believe combining the two divisions will create significant new opportunities for further business growth and job creation.”

She added: “While we do anticipate that the formation of the new enlarged Morgan Sindall business will lead to some redundancies, this is likely to be in areas where we may be overstaffed or there is job duplication.”