Babtie Group, the fast-growing engineering consultancy, looks set to be taken over by a US giant in a multi-million pound deal which could raise questions about the security of hundreds of jobs at the Glasgow-headquartered company.

A source told The Herald that shareholding directors in the 109-year-old firm were negotiating the sale of Babtie to Jacobs Engineering of California, which will move control of the firm to England.

The deal could raise millions for long-serving bosses, including chief executive Bill Mitchell, who are approaching retirement age after successful careers spent helping grow Babtie into an international leader in fields such as road construction.

Asked about the sale to Jacobs, a Babtie director said he was ''not aware anything was out in the public environment'' and the time was not right to comment.

However, the reports will be greeted with dismay in Scotland, where the sight of stars such as Clydeport surrendering their independence to firms from outside the country has caused widespread concern in recent years.

Babtie, which has 50 offices across the world and a

global workforce of around 3500, epitomises the kind of knowledge-driven enterprise succeeding in fast-growing international markets that politicians and development experts want to promote in Scotland.

With stock market-listed support services trading on multiples of 10 or 20 a firm with the company's earning power could be worth tens of millions of pounds.

Reports of the sale to Jacobs come soon after Babtie reported dramatic growth in earnings to record levels in the latest year, in areas as diverse as flood defence, nuclear decommissioning, and rail safety.

Accounts filed in April show Babtie grew pre-tax profits 51% to (pounds) 7.8m in the year ended December. Sales grew 6% to (pounds) 189m providing further evidence of the transformation of the firm from a low-profile Scottish partnership into an international leader in its field in recent years.

Babtie, which began life in 1895, was a partnership specialising in water and sewage systems for many years and only became a limited entity in 1993.

Since then it has expanded ambitiously by acquisition into new areas, including designing thrill rides like the London Eye and been a prominent beneficiary of the rise of public-private co-operation on infrastructure projects.

It has developed overseas operations in countries including China and India, where huge spending on roads and the like has created big demand for western expertise and financial models.

With the company generating plenty of cash under the chairmanship of Chris Masters, formerly chief executive of Aggreko, the generator hire giant, since 2002, Babtie has been left debt-free.

As a result Mitchell appeared cool recently about the possibility of a flotation saying Babtie had no need to raise funds on the stock market.

However, Mitchell and fellow executive director Morris Murray will turn 60 within the next year. Alan Craig, another executive, will be 55 in November. Together the three men control one million shares out of 5.225 million ordinary shares in issue.

Most of the equity is in the hands of more than 100 director-shareholders, who are required to sell back their shares on retirement.

Mark Cubitt, the former Dawson International executive who has been Babtie's finance director since 2000, is the only executive director aged under 45.

As a result many key people may have felt the time was right to accept an offer from a well-funded international giant capable of helping Babtie grow further.

Founded in 1947 and listed in the US since 1971, Jacobs Engineering has grown into one of the biggest engineer-

ing consultancies in the

world.

The corporation works in fields including oil and gas and pharmaceuticals engineering and recorded net earnings of $126m ((pounds) 69m) on sales of (pounds) 2.5bn last year.

It has been active in the UK since 1993 and has four offices in the country, including one in Uddingston.

The source was concerned control of Babtie's activities could be assumed by staff based in Jacobs' offices in Manchester, Reading or London.

Any buyer would be expected to try to cut out areas of duplication to boost profitability.

Jacobs Engineering did not comment.