Grupo Ferrovial now poised to takeover BAA 06/06/2006 00:00

6 June 2006

MADRID — Spanish construction group Grupo Ferrovial has won support from the world's biggest airport's operator BAA for a friendly takeover.

British Airports Authorities (BAA), which runs seven UK airports, has agreed to an offer valuing the company at GBP 10.3 billion.

Ferrovial has beaten competition from a consortium led by US bank Goldman Sachs.

On Tuesday, the Takeover Panel extended the deadline for a bid from the Goldman Sachs consortium to 16 June.

BAA, which operates airports handling 63 percent of all air passengers entering or leaving the UK, had previously resisted being taken over, but is now recommending the Ferrovial approach to shareholders.

Ferrovial's latest offer marks a 17 percent price increase on its original 810 pence-per-share approach.
 
Ferrovial first said it was considering an approach for the Heathrow Airport operator in February.

Two months later, the Spanish group made a hostile takeover bid for BAA, after the UK firm's board rejected its approaches.

The Ferrovial consortium's bid vehicle, Airport Development and Investment Limited (ADI), said it would safeguard the existing employment rights of all BAA group employees, including pensions rights, but added that it would also examine ways to cut costs.

BAA - which, in addition to owning seven UK airports, also has business interests in the US, Italy and Hungary - has been seen as a popular takeover target for companies hoping to exploit the surge in air travel worldwide.
 
[Copyright EFE with Expatica]

Subject: Spanish news