Construction giant Lend Lease could be an acquisition target amid rumours that a major Japanese company is plotting a takeover of the company, media reports suggest.

The Australian has reported that a Japanese firm is considering a plan to buy the company and then break up and sell its various businesses to different suitors.

Exactly which party this is remains unclear, the newspaper reported.

Also unclear is whether or not any approaches have been made to Lend Lease.

The rumours come as Lend Lease is working on a sales process for its engineering services business, which has been affected by writedowns on developments such as the Sydney NorthConnex Tunnel, Kingsford Smith Drive and Gateway Motorway Maintenance in Brisbane.

These woes have impacted the Lend Lease share price, which has fallen from more than $20.00 last August to current levels of $12.70.